Question

6) Supply side economics has often been (derisively) referred to as "trickle down economics". Explain why people may have this perception.

Answer 1

Unlike the demand side economics which tend to reduce the price of the goods and services directly for the consumers by contractionary fiscal and monetary policy the supply side side economics reduce the price for the producer and believe that the benefit provided to the producer of the goods in terms of lower taxes, better infrastructure and business friendly regulations will make the production cheaper and that money saved will result in the lower cost of the goods produced by the producer will be transfer to the consumer i.e. that will trickle down to the consumer.

So basically instead of directly reducing the price it is making the production easier and that will benefit the consumer through the supplier. That is the trickle down to the consumer (practically, it never worked.).