Date of Award
Spring 2022
Degree Name
Bachelor of Science
Department
Historical & Political Studies; College of Arts & Sciences
First Advisor
Angela Kachuyevski
Abstract
There are two economic theories that dominate tax policy in American law. Demand-side economics and supply-side economics offer contrasting explanations for economic growth, and offer separate methods to improve the economic climate in America. Tax rates and government involvement in the economy are two main points of contention between these two theories. Through the method of pattern matching, I conduct an analysis of several major policy changes through the years from President Ford to President George W. Bush, and analyze empirical data to match it to the claims of theoretical predictions. My findings show that through a balance of both demand side and supply side economics, the growth of the economy and federal revenue benefit more than the use of one alone.
Recommended Citation
Nissley, Collin, "Which System Works for Capitalism?: An Analysis of Supply Side and Demand Side Economics Tax Policy" (2022). Capstone Showcase. 12.
https://scholarworks.arcadia.edu/showcase/2022/pgl/12
Which System Works for Capitalism?: An Analysis of Supply Side and Demand Side Economics Tax Policy
There are two economic theories that dominate tax policy in American law. Demand-side economics and supply-side economics offer contrasting explanations for economic growth, and offer separate methods to improve the economic climate in America. Tax rates and government involvement in the economy are two main points of contention between these two theories. Through the method of pattern matching, I conduct an analysis of several major policy changes through the years from President Ford to President George W. Bush, and analyze empirical data to match it to the claims of theoretical predictions. My findings show that through a balance of both demand side and supply side economics, the growth of the economy and federal revenue benefit more than the use of one alone.