Demand-Side Economics

Demand-side economics is an economic theory that emphasizes the importance of consumer spending as the primary driver of economic growth. It suggests that when individuals and businesses increase their spending, demand for goods and services rises, leading to higher production, job creation, and overall economic activity. This approach often advocates for government intervention, such as fiscal stimulus or increased public spending, to boost demand during economic downturns. The underlying belief is that a thriving economy relies on strong consumer demand rather than solely on supply-side factors, like production and investment incentives.