According to Reagan's model for supply-side economics, how would average Americans be affected? Tax increases for business owners would reduce the income of the wealthy, so the average person would have more. Tax cuts would mean that businesses would become more efficient and workers would lose their jobs. Tax increases would mean that businesses would have less wealth and would produce less for consumers. Tax cuts would stimulate business growth, which would grow the economy and benefit everyone.

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Tara Ross

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20 February, 10:45

According to Reagan's model for supply-side economics, how would average Americans be affected? Tax increases for business owners would reduce the income of the wealthy, so the average person would have more. Tax cuts would mean that businesses would become more efficient and workers would lose their jobs. Tax increases would mean that businesses would have less wealth and would produce less for consumers. Tax cuts would stimulate business growth, which would grow the economy and benefit everyone.

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Larry Tanner · Answer 1

"Tax cuts would stimulate business growth, which would grow the economy and benefit everyone" was Reagan's idea of supply side economics. He believed that if you take away rich people's incentives to work the whole economy suffers, but this has been widely discredited.