Critics of supply-side economics:

Question

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Critics of supply-side economics generally argue that a tax cut will have limited effects on economic growth because it will primarily increase aggregate demand, rather than incentivizing increased production and investment. Additionally, they contend that the relationship between tax rates and economic incentives is unclear and not easily manipulated through policy. Finally, critics often raise concerns about the potential for tax cuts to worsen budget deficits, particularly if government spending is not reduced proportionally.

Critics of Supply-Side Economics