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'''Supply-side economics''' is the idea that high [[marginal tax rates]] stifle economic growth and that, at certain points, cutting tax rates can increase the supply of goods and services without lowering tax revenues.

These ideas were taken up as a popular political movement during the 1980 election campaign, with [[Ronald Reagan]] proposing a modified policy of supply-side economics (although [[liberals]] disparagingly used the term "trickle-down" economics)--a term they have used against conservatives since [[William Jennings Bryan]] in 1896. <ref> [http://www.investopedia.com/articles/05/011805.asp Understanding Supply-Side Economics], David Harper </ref> The decreased regulation begun in the late 1970s, together with lower marginal tax rates would provide enough savings and investment to pool new capital and drive economic growth. Manufacturers for example, would hire more people, produce more, and create more demand and economic activity. The idea gained wide popular support, and became known as "Reaganomics".