What is a core principle of supply-side economics?

A core principle of supply-side economics is focused on stimulating economic growth by reducing taxes and regulatory burdens. This approach posits that lower taxes incentivize individuals and businesses to invest and spend more, leading to increased production, job creation, and overall economic expansion. By decreasing the financial and regulatory pressures that businesses face, supply-side economics suggests that this can lead to higher levels of investment and productivity, ultimately benefiting the economy as a whole.

The rationale behind this principle is that when people keep more of their earnings and businesses experience reduced costs from regulations, they have both the means and the motivation to engage in economic activities that drive growth. This contrasts with other economic theories that may advocate for increased government spending or regulatory intervention as a means to stimulate the economy.