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

the increased spending by the consumer. Innovation and entrepreneurship are encouraged

ductivity, worker?s wages will begin to

long run. This allows for a decrease in taxes for both the middle and lower class. If tax

the government by means of goods and service taxes. Tax cuts directed at the rich will

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