Can someone please define these Economic things ?Watch
2) Supply Side Economics
3) Demand Side Economics
Thank you and i have tried googling but it goes into way more detail than i understand :/ just want a basic outline of what the government would do with each of these policies i.e raise taxes or whatever
However, these policies became ineffective to counter the economic crisis of the 1970s, which combined both high unemployment and inflation (called "stagflation" ). Demand policies did not work because world economies had become more open and British companies were not competitive in the global market. When the state gave benefits, people bought products manufactured abroad. For example, in the 1970s people bought walkmans, pocket radios, VCRs, etc. which were made in East Asia (especially Japan). So, public money was "wasted" on foreign goods and the UK had large trade and budget deficits, funded by printing banknotes, thus fuelling inflation.
With Margaret Thatcher (and Reagan in the USA) a new set of economic policies were used (although they had already been experimented before), such as Monetarism. It is another economic doctrine, which was designed by Milton Friedman (US economist, leader of the Chicago School). It advocates the limitation of public spending and money printing in order to reduce inflation. Friedman and his followers also said that companies (who make supplies) must be favoured so they can produce goods and services at a cheaper cost than their foreign competitors. Therefore, they pushed for economic deregulation, reducing taxes, cutting public spending, fighting the unions, etc. anything to cut the labour cost.
So in short:
Demand=favouring people (or consumers)=Keynes=post-war governments (especially labour).
Supply=favouring businesses=Friedman=Thatcher+ Reagan.