Supply-side economics

Supply-side economics is a school of thought that advocates stimulating output by improving productivity as the best way to boost economic growth. This can be achieved by tax cuts for the wealthy to encourage entrepreneurship, reducing regulations on business, and promoting labor market flexibility to make it easier to hire and fire workers. The approach was developed by free-market economists in the 1970s as a counter to Keynesian economics, which tended to focus on shortfalls in demand.