Do 'supply-side' economics really work and what is it that they're supposed to achieve?

Question

I heard one theory was budget deficits are tolerable so as long the economy keeps growing at a faster rate.Is that sustainable in the end?

Answer 1

supply side or trickle down economics it the theory that the more profit is made the more will"trickle down" to the poorer classes. i don't see it as a sustainable system because of the limited resources available. at some point nothing will trickle down. it is not self sustaining.

Answer 2

This is sustainable as long as the economy continues to expand because gov't income from taxes will increase the next year to pay off the deficit from the previous year. This happens because of the multiplier effect which describes how an increase in gov't spending will actually stimulate the economy and increase GDP. That increase in GDP will be realized by the gov't as increased tax revenues in the following year, enabling the gov't to pay its debts and maintain good credit, allowing more loans to be taken to finance futher deficit spending in the future