Supply-side economics Supply-side economics Supply-side economics is a macroeconomic theory arguing that economic growth can be most effectively created by lowering taxes and decreasing regulation, by which it is directly opposed to demand-side economics. According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices and employment will increase. It was started by economist Robert Mundell during the Ronald Reagan administration. The Laffer curve is one of the main theoretical constructs of supply-side economics, the idea that lower tax rates when tax level is too high will actually boost government revenue because of higher
To each according to his contribution products for an equal amount of labor". Joseph Stalin and Leon Trotsky both mentioned the term in their works. To each according to his contribution "To each according to his contribution" is a principle of distribution considered to be one of the defining features of socialism. It refers to an arrangement whereby individual compensation is reflective of one's contribution to the social product (total output of the economy) in terms of effort, labor and productivity. This is held in contrast to the method of distribution and compensation in capitalism, where those who own private property receive unearned income in the