Assignment – Supply side vs. Keynesian economics part of our studies on policy-making, define and give a brief history of both “Supply Side” (also known as trickle-Down) and Keynesian economic theories. Compare and contrast them, giving the pros and cons of each. Finally, provide an analysis of whether they work, including specific examples. Supply side vs. Keynesian economics

Supply side theory is an economic theory that states that the best way to achieve economic growth is for the economy to produce more goods and services. The supply-side approach emphasizes taxation and deregulation, taking into account fiscal levels. But at the economic level, entrepreneurship and human capital play an important role. President Ronald Reagan used the term in the 1980s to address price-related issues that sparked recessions in the early 20th century (Perales, 2018). Ronald lowered tax rates and corporate income taxes, which helped the economy through the crisis but ultimately increased the national debt. Supply-side economic theory influenced President Donald Trump’s tax package in 2017. To boost economic growth, it has focused heavily on lowering personal and corporate taxes. Supporters of the bill claim that this trickle-down strategy would benefit all Americans, but evidence suggests that the wealthy would benefit the most from the tax cuts. continue…

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