Direct answer (brief): Reaganomics is most accurately described as supply-side economics. It is also widely known as trickle-down economics or voodoo economics, but the core theory it embodies is supply-side economics. Context and explanation:
- Core idea: Cutting taxes, reducing regulation, and limiting government spending to stimulate investment, production, and economic growth from the supply side of the economy. This framework emphasizes that reducing barriers for producers (businesses and investors) will expand supply, create jobs, and raise overall output.
- Alternate labels: The policy package is commonly referred to as Reaganomics, Reaganism, or supply-side economics. Critics and some proponents alike have used “trickle-down economics” to describe perceived indirect effects on broader society, though the term is more evaluative than a formal descriptor of the theory itself.
- Historical context: Reagan’s approach contrasted with Keynesian demand-management strategies and was associated with deregulation, tax reforms (notably tax cuts), and a monetary stance aimed at reducing inflation, with debates about distributional consequences and long-term debt implications.
If you’d like, I can summarize how supply-side economics differs from monetarist and Keynesian perspectives, or compare Reaganomics to other policy eras.
