what was the central assumption that the reagan administration's supply-side economic policies depended on?

Answer 1

The central assumption of the Reagan administration's supply-side economic policies was that cutting taxes, particularly for the wealthy and corporations, would incentivize investment, innovation, and job creation, leading to overall economic growth and ultimately increasing government revenue in the long run. This theory, known as "trickle-down economics," posited that helping the rich get richer would benefit everyone by boosting overall economic activity.