Stimulating the growth of an economy

The purpose of this paper is to examine the use of government tax cuts, as one

tactic of supply side economics. The pros and cons to supply side economics with

reference to historical evidence will show that cutting taxes as prescribed by this plan will

in fact stimulate economic growth. Does it work? The people of Ontario are going to

Supply side economics is a theory geared towards the economic health and

constant growth of an economy by influencing the supply of labor and goods. While

many economists would seek economic health through a greater concern for gross

national product, ?supply siders? believe in measures which increase the incentive to

work and to produce goods and services. The means by which economic growth is

achieved, is by maintaining capital and the freedom of entrepreneurship.

One tactic of supply side economics is tax cuts. Decreased taxes are a key factor

directly related to the growth of the labour force. Lowering of taxes, tends to stimulate

the economy in such a way that the production of goods and services is increased without

a rise in inflation. As a result of increased pro

confidence in the economy. The failure of supply side economics when implemented by

President Reagan was due to the ?political realities? of the time that would not allow the

cutting income taxes will increase overall government revenues in the long run through

incentives to produce are increased.1 Supply siders believe that this methodology of

than the stimulus of the tax cuts because the cuts must also be big enough to reduce the

the government must cut services such as; healthcare, education, and social assistance.

Some common words found in the essay are:
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Approximate Word count = 829
Approximate Pages = 3 (250 words per page double spaced)