Different Views On Economic Issues - 1203 Words

There are three different groups of economists that have many different views on economic issues. The first type of economics is Supply-Side Economics, and according to Library of economics and liberty it is a term that that is used to describe the fact that supply underlies consumption and living standards. The second type of economics is Demand-Side Economics, and according to Investopedia Demand-Side Economics is based on a belief that the main force affecting overall economic activity and causing short term fluctuations is consumer demand for goods and services. The last type of economics is the Monetary Policy, which according to Federal Reserve Education.org is a term that refers to what the Federal Reserve does to influence the†¦show more content†¦There are many advantages to the Supply-Side Economics and the first one is Lower Taxes. Lowering taxes is one of the main bases and ideas for the supply side economics. By having the lowering of taxes it will provide an in centive to earn more by allowing people to keep more of their well-earned money. Also, another huge advantage of the supply-side economics is that it urges the claim that high marginal tax rates encourage individuals to shelter their money from taxes. Also, if they were to cut tax rates investors will be able to take some extra out and invest it into other things that will allow them to make even more money. Although, there are many advantages to having Supply-Side economics there are also many weaknesses that the policy possesses. The first weakness is the reduction of unemployment benefits, if the economists were to cut the tax rate then it would make it harder for those who are unable to work to get their unemployment checks and will force them to try and find work. Cutting taxes would make life easier for those have more, and harder for those who have less. The Supply-Side Economy is mostly a huge advantage for the rich and a huge disadvantage for the poor, because they are not able to receive lots from unemployment due to the government not receiving lots of money in taxes. Demand-Side Economics is a belief that the consumers demand for goods and services is the force that affects most economic actions and is the reasons for short-term