Macro Minute -- Demand-side vs. Supply-side Economics

[FSquid]

If both firms and consumers are capable of saving or spending their money, the argument that consumers just will spend and that firms just won't doesn't fill me with confidence. I can think of good reasons for both groups to both spend or save but only firms can invest the extra money into their own operation and expand their growth. What am I missing here?

[michaelvimont]

Excellent two-minute overview! Put simply, business owners will not expand or create a business unless there is a perceived demand for the product or service. They do not do it based primarily on tax incentives. Therefore, increase the demand, and the supply will take care of itself.

[raivokleijsen]

You're such a legend, helping me prep for my economics exams!

[КлерХо]

You have a very efficient and simply way to explain this concept! Was googling what demand side policy means but none of the websites can give clear and simple explanation of that! They only gave me the textbook definition and “examples” which made me even more confused

[kevin]

Seems like the goal of supply side economics is to create market gluts, but that can’t be. Maybe I just don’t get it. 🤷‍♂️