Supply-side economic policies

Definition

Supply-side economic policies are government measures aimed at increasing the productive capacity and efficiency of an economy. These policies focus on encouraging entrepreneurs, businesses, and workers to produce more goods and services by reducing regulations, lowering taxes, and investing in education and infrastructure.

Related terms

Tax cuts: Reducing tax rates can incentivize individuals and businesses to work harder, invest more, and create jobs.

Deregulation: Removing unnecessary regulations can reduce barriers for businesses, allowing them to operate more efficiently and innovate.

Investment in human capital: This term refers to government spending on education, training programs, and healthcare which helps improve the skills and productivity of workers.