What is “supply-side” economics?
It has two related meanings – one broad and one more specific. At its most general, the phrase “supply-side” simply relates to economic analyses that stress the importance of supply factors (as opposed to demand) in determining long-term growth. Such factors include the effect of incentives on production, the efficiency of the labour market, the need to avoid over-regulation and the level of saving. More specifically, the term is associated with US and UK economic policy of the 1980s: so-called “Reaganomics”, shaped by economists such as Arthur Laffer, and Thatcherism. These