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The Importance Of Supply-Side Economics

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With the current presidential election taking place, one of the most important actions a voter can take is deciding which economic ideas they support and which ones are represented in each candidate’s tax plan. Some may support Keynesian ideas, which favor the idea of spending government money to create jobs and eliminating taxes on the lower and middle class to create demand. Supply-side economics (also known as trickle-down economics) tend to have the opposite expectation in ideas; this form of economics favors lower taxes for businesses in order to create revenue to put back into businesses. Also, supply-side economics supports the idea of saving government money by limiting its spending. Lastly, there are classical economic ideas which support ideas such as free trade and limiting the government’s involvement in problems with economics. Though one may expect each candidate to stick to one economic idea, this is typically not the case; many of these candidates plan to mix these ideas. …show more content…

This holds some truth as in Johnson’s plan, he agrees with “eliminating the Federal government as an obstacle to state…decisions.” This ideas supports classical economics as he wants to limit the government's power in federal intervention. He also says that “regulation should not be used to manipulate the economy” which is the entire basis of classical economics; this way, the government does not control the market, which classical economics says will always correct itself. However, when it comes to businesses, Johnson does agree with some supply-side ideas; he wants to “get rid of the double-taxation on…businesses.” This plan, under trickle-down economics, would stimulate business revenue, creating

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