Which economic concept is characterized by tax breaks for the wealthy and benefits trickling down to the broader population?

The concept characterized by tax breaks for the wealthy that are intended to promote economic growth with the expectation that the benefits will trickle down to the broader population is known as supply-side economics. This approach posits that lowering taxes on businesses and high-income earners stimulates investment in the economy, leading to job creation, increased production, and ultimately benefits that reach all economic levels.

Supply-side economics operates on the belief that when the wealthy have more disposable income due to lower tax burdens, they are more likely to invest in businesses and create jobs. The theory encourages a focus on enhancing production capabilities rather than addressing demand directly. As production increases and businesses grow, it is expected that wages will rise, leading to increased consumer spending.

In contrast, demand-side economics focuses on stimulating demand directly through government spending and social programs, particularly benefiting lower and middle-income individuals. Keynesian economics also emphasizes the role of government intervention in managing economic cycles primarily by increasing demand during downturns. Socialist economics, on the other hand, advocates for collective or governmental control of the means of production and distribution, which does not align with the principles of supply-side economics.