What is the difference between supply-side and demand-side policies?
Supply-side policies are premised on the idea that economic growth is best stimulated by tax cuts aimed at producers or suppliers of goods and services. Supply-side advocates thus support lowering business and corporate taxes and a reduction in the capital gains tax. Demand-side policies are premised on the idea that economic growth is best stimulated by tax cuts aimed at consumers on the demand side of the economic equation. Demand side advocates favor lowering taxes for middle- and lower-class consumers.
