Those who favor government policies to stimulate the economy by creating incentives for individuals and businesses to increase their productive efforts are supporting: supply-side economics.
Supply-side economics is a macroeconomic school that holds that economic growth can be achieved more effectively with measures that increase aggregate supply by reducing barriers for people who produce (offer) goods and services, such as reducing taxes and by allowing greater flexibility through deregulation.
According to supply-side economy, consumers will end up benefiting from a greater offer of goods and services at lower prices. Policy recommendations typical of supply-side economists are to lower tax rates and lower legal regulation of economic activity.
I think it is because power was only granted to the central government on a goodwill basis from the states and also due to lack of a strong central government.
