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Social Studies Question Pleases Help! ^^?
What is the term of the idea favored by Reagan that would lower taxes on producers to raise output and spur growth?
Best Answer - Chosen by Asker: That was called Supply-side economics.
During the 1980 race for the Republican nomination, George Bush the Elder (later Reagan's VP) called it "voodoo economics" and he wasn't far off. It has been pretty much discredited for a couple of decades.
Another term associated with it was the "Laffer Curve," supposedly drawn by economist Arthur Laffer on a dinner napkin, that purported to show how lowering taxes on producers would initially depress revenues but then later enormously increase them.