Supply-Side Economics Research Paper

Some economists support policies that stimulate demand. Others favor those that stimulate the supply of goods and services. And then, there are economists that prefer policies based on the growth of the money supply. But which economist is right about their choice on how they choose to run their business? All of these ideas have benefits sitting right behind them, but some come with more disappointments verses satisfactions. Supply-side economics is known as a macroeconomic speculation which goes against economic growth being the most effective creation by financing in capital, and by menacing barriers on the making of goods and services. Supply-Side economics and policies would help the economy the best during the time of a recession …show more content…
Keynes, a very popular economist, believed that the cycle of business should allow for government intervention. He believed the government should have spent more money to try and affect demand rates. Keynes thought that aggregate demand could be taken care of if the government policy could stimulate money spent on investments, money spent throughout the government, exports, and the leakages. The spending coming from the government was rated top priority to him and he hoped that the government would have done such a thing. During this, he believed that the economy would thrive to its full potential even during the time of temporary economic decline. Whenever excessive demand occurs, inflation occurs, which can lead to the aggregate demand being reduced. Whenever a recession occurs, aggregate demand can be increased. This is a scenario that has been proven during the times of: October 1987 when the stock market began falling, and after the 9/11/2001 terrorist attacks in New York and Washington, DC. The stock market dropped much quicker than it did during the year of 1929, but the affect on the economic growth was little to none due to Keynes theory. I believe that this policy is not so beneficial because of the increase in tax. Even though it allows more room for programs and increased wages, and it stimulates demand, it didn't seem like the smartest out of these

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