An economic theory that emphasizes reducing barriers to production and encouraging investment as a means of stimulating economic growth.
Related terms
Trickle-down economics: A concept associated with supply-side economics where it is believed that benefits given to the wealthy or businesses will eventually "trickle down" to benefit everyone in society.
Laffer curve: A graphical representation of the relationship between tax rates and tax revenue, showing that there is an optimal tax rate beyond which further increases may actually decrease revenue.
Deregulation: The process of removing or reducing government regulations on businesses and industries.