Tell me if you agree or disagree with this informaiton and why? Supply-side fisc

Question

Tell me if you agree or disagree with this informaiton and why?

Supply-side fiscal policy involves the use of government spending and taxes to affect the production (supply) side of the economy. When the government uses money today to increase the supply of tomorrow helps build a better technology friendly work force of the future. Even though the government may have to wait a bit to see these results. Take the example from our text book. Offering college students Pell grants to help pay for education well help the labor workforce later.

Tax breaks are another way to boost side-side economic policies. Tax credits for certain businesses that can create a better tomorrow. There is an emphasis on tech businesses because they tend to advance us towards cutting edge innovation to compete globally. Also tax breaks on individual may create a better appreciation for work. The happier the team is at work the more production possible. I know if I have extra money in my pocket I happier!

After researching this topic, I was still left with mixed feelings because we are not sure this works for the long term. In the here in now its great for the extra bucks but at what cost? More government spending? I guess its better than printing more money with not much to back it up.

Explanation / Answer

I agree with the above provided information. Supply side fiscal policy is used to improving the production of the economy. And this is how it works in the long term. Government has to take up spending to remove the impediments in the production. Government spending is needed to build up eductional institutes adding to the future human capital. Printing more money is not the permanent solution. It can just act as catalyst in the short run but in the long run economy should be capable to supporting itself and thst wil happen only with better and more production.

This can happen only with supply side fiscal policy

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