Supply-side Revolution

The Supply-side Revolution refers to a shift in economic policy during the 1980s, primarily in the United States, where governments focused on boosting economic growth by reducing taxes, especially for businesses and high-income individuals, and decreasing regulations. The idea was that by making it easier and more profitable for companies to produce goods and services, overall economic activity would increase, leading to more jobs, higher income, and greater prosperity. It emphasized encouraging supply—production and investment—rather than solely focusing on demand through government spending. This approach aimed to stimulate long-term economic growth and improve living standards.