Asked by HM

Supply-side economics, during President Reagan’s administration, involved

a. the supply component of the supply-demand equation.

b. stressing the importance of tax cuts for businesses.

c. stressing the importance of tax
cuts for the wealthy.

d. an increase in the size of the national debt.

e. All these answers are correct.

I say D is correct, but then it seems like so is A and B
Answered by Ms. Sue
Aren't they all correct?

Answered by HM
Could be, but why would Reagan want to cut taxes for the wealthy?
Answered by Ms. Sue
It's the wealthiest people who contribute to politicians' campaign. They give far, far more than the middle class. Think about the current argument about the Democrats wanting to stop tax cuts for the rich, while Republicans want to continue these tax cuts. Wealthy people are more likely to vote Republican than Democrat.




Answered by HM
Registered.
They thought cutting taxes from the wealthy and the poor would both decrease the power of the government. Thank you Ms. Sue.
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