Journal Topic 13: Supply or Demand?

I think it is more effective in keeping the economy healthy by using supply-side economy, because it focuses on  stimulating production (supply) to increase business output, create incentives for business investment, makes people work, save, and invest more, and it also causes businesses to increase output. I think it is good to invest into those businesses than people have more money. Demand-side fiscal policy is a plan to stimulate aggregate demand, and supply-side fiscal policy provides incentives to producers to increase aggregate supply. Because supply-side fiscal policy provides the producers to increase the aggregate supply in the economy, and use the money to build the infrastructures, such as new highway road system, national parks, and other public services. Most governments believe that improved supply-side performance is the key to achieving sustained growth without causing a rise in inflation. Because the supply-side fiscal policies can increase the productivity in the county, the government can create more jobs for people to apply, which then encourages the start-up and expansion of new businesses. There must also be a high enough level of AD so that the productive capacity of an economy can actually be brought into play. I think that supply-side fiscal policy is still best for the economic growth.