This pamphlet called for funded tax cuts, imaginative quantitative easing, more capital spending and supply side measures.
On the supply side of the capital markets, meanwhile, regulation channels a disproportionate amount of high-yield investment toward the mutual fund or the hedge fund universe.
Another important distinction between short- and long-run closures relates to the treatment of the supply side of regional industry capital markets.
In addition to the trends on the supply side, the demand for venture capital has fundamentally changed.
As for small government, Reagan slashed top tax rates – capital gains tax down to 20% – in the name of "supply side" economics ("voodoo economics", George Bush senior called them) which would rescue the US from Carter's "malaise".
Only by ending the preferential treatments to SOEs can the government really achieve the important goal of allocating capital and resources fairly across different market sectors on the supply side.
Even more important, income inequality constrains economic growth on the supply side through its adverse effects on educational opportunity and human capital development.
The demand side of the markets for productive factors is explained in large degree by the theory of marginal productivity, but the supply side requires a separate explanation, which differs for land, labour, and capital.
For example, on the input supply side (the backward linkages), there will be a growing demand for capital goods, such as tools and agricultural machinery, as well as for the associated service inputs.
Thus, using a growth model which integrates variables from both the supply side and demand side, we assess the direct and indirect effects of human capital on economic growth, including in the latter the interaction of human capital with the industrial specialization of countries.
