Say's Law and Supply Side Economics (The Friesian School, Kelley L. Ross, Ph.D.)
Irving Kristol and the Coming of Supply-Side Economics (Brad DeLong)
Supply-Side Economics (Derek Brown)
According to James D. Gwartney in Fortune, "Supply-side economics stresses the impact of tax rates on the incentives for people to produce and to use resources efficiently....An increase in marginal tax rates reduces the share of additional income that earners are permitted to keep. This adversely affects output for two major reasons. First, higher marginal rates reduce the payoff that people derive from work and from other taxable productive activities. When peole are prohibited from reaping much of what they sow, they will sow more sparingly. Thus, when marginal tax rates rise, some people, those with working spouses for example, will opt out of the labor force. Still others will decide to take more vacation time, retire earlier, or forgo promising but risky business opportunities. These reductions in productive effort shrink the effective supply of resources and thereby retard output. Second, high marginal tax rates also encourage tax shelter investments and other forms of tax avoidance.
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