Wednesday, May 17, 2017

Unit 5 April 24


  • Supply side economics or Reaganomics
    • stimulate production or supply to spar output
    • cut taxes and government regulations to increase incentives for business and individuals 
    • business invest and individuals
    • business invest and expand creating jobs 
    • people work, save and spend more
  • Laffer curve- depicts a theoretical relationship between tax rates and tax revenue
  • Criticisms of the laffer curve
  1. Imperial evidence suggest that the impact of tax rates on incentives to work save and invest are small
  2. tax cuts also increase demand which can fuel inflation and demand impacts may exceed supply impact
  3. where the economy is actually located on the laffer curve is difficult to determineImage result for laffer curve
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1 comment:

  1. Debra O.May 18, 2017 at 6:48 AM

    After reading your blog i gained a better understanding on
    Reaganomics. Reaganomics is the economic policies of the former US president Ronald Reagan, associated especially with the reduction of taxes and the promotion of unrestricted free-market activity. I like how you added visuals.

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