What is the primary objective of 'supply-side' economics, often associated with the 1980s?
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Correct answer: Stimulating the economy by cutting taxes and reducing regulation on businesses
Supply-siders, or 'Reaganomics' proponents, argued that reducing the burden of regulation and taxes on producers would lead to more investment, job creation, and overall economic growth, effectively advocating for a modern version of laissez-faire.
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More Laissez-Faire vs Regulation questions
- The 'Lochner era' refers to a period in Supreme Court history characterized by:
- Which 18th-century economist's work 'The Wealth of Nations' provided the foundational theory for laissez-faire?
- What was the significance of the Wagner Act (National Labor Relations Act) of 1935?
- In the late 20th century, 'deregulation' in industries like airlines and telecommunications was intended to:
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- Environmental regulations like the Clean Air Act (1970) are based on the economic concept that: