A theory of economics that reductions in tax rates will stimulate investment and in turn will benefit the entire society. Bloomberg Financial Dictionary
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A theory in economics that says tax cuts, liberal employment laws, deregulation and similar measures to ease constraints on companies, will boost investment in production and increase the supply of goods in the economy. Also seen as a way of controlling inflation, by concentrating on increased output rather than on controlling prices or money supply.
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supply-side economics UK US noun [U]
► ECONOMICS economic thinking based on the idea that the supply side of the economy should be encouraged, for example by taxes being low, and that this will lead to economic growth: »
Advocates of supply-side economics want tax cuts for individuals and businesses and complete deregulation of financial systems.
Financial and business terms. 2012.