The Argument Between Cost-Side Economics And Monetary Policy

There is an argument between which theory works best, side-supply or demand-side. They are both important because you need both the supplier and consumer. When you comparing and contrasting the two arguments it is obvious that they are both needed to make our economy better.

Supply-side economics is also known as Reaganomics or the "trickle-down" policy. Side-supply has three parts: tax policy, regulatory policy and monetary policy. Tax cuts for investors and entrepreneurs gives a greater outcome of benefits for the entire economy. Supply-side economics suggests that the most important thing in economic growth is the production of good and supplies. The more the producers makes of the product and supplies it the more the economy is grow. Tax policy is a choice the goverment makes as to what taxes to impose, how much to impose or levy , and on whom. It has both microeconomics (effects of individual decisions) and macroeconomic (example: interest rates) aspects. Regulatory policy is using regulations, laws, and other instruments to get better economic outcomes that can help make the life of citizens …show more content…
Politicians can't decide which one is more efficient so they switch depending on which party is in office. The argument between the two theories is actually just pointless because you need them both. By cutting government and taxes across the board both suppliers and consumers have more money in their banks/pockets. Money then will not be wasted on government activities.The government makes nothing valuable for consumers, other than their safety which is their job. Our goverment still feels the need to try and do more than just their job of protection though. Applying the money and scarce resources they have to more helpful land useful things would help our economy for the better.They should honestly just lower taxes and goverment funds. They need to find a balance and a efficient