Which economic policy involves reducing government intervention in the economy?

Supply-side economics is characterized by a focus on boosting economic growth through policies that reduce government intervention, particularly in taxation and regulation. This approach posits that lower taxes on businesses and individuals can lead to increased investments and job creation, ultimately benefiting the entire economy. By minimizing government's role, this policy encourages private sector growth and promotes the idea that when producers succeed, their prosperity will trickle down to others in the economy via job creation and increased consumption.

In contrast, Keynesian economics typically involves more government intervention, particularly during economic downturns, advocating for increased spending to stimulate demand. Mercantilism emphasizes government control over the economy, particularly through trade regulations and promoting exports. Socialism advocates for significant government involvement and ownership in the means of production, aiming to eliminate class distinctions and provide equal access to resources. This fundamental difference highlights why supply-side economics is aligned with reducing government intervention in the economy.