Author: Dr. David Ackah, PhD.
President, Institute of Project Management Professionals (IPMP)
Email: drackah@ipmp.institue / drdavidackah@gmail.com
Abstract
Supply side economics is that branch of economics that deals with production of goods and services by providing incentives to the producers to produce more and hence ensure a steady stream of goods to the marketplace. This paradigm of economic growth assumes that lowering the tax rates provides incentives for the producers to produce more leading to a situation where there is an increase in incomes and hence the increase in tax revenues to the point where the shortfall due to the lower tax rates is more than made up due to the increase in the tax collections. Supply side economics came into prominence with the Reagan administration in the US and the Thatcher stint in the UK. This lead to an unprecedented boom in the economies of these countries that was touted as the example of “trickle down” economics that posited that wealth generated at the top of the pyramid trickles down to the members at the bottom.
