Now, I think of it a little differently. The Bending Stress in a beam depends on many things, the moment (from load applied), distance from the neutral axis to the outermost fiber, and moment of inertia.
So calculate moment of inertia using the bd^3/12 formula for a 2x8 laying flat and one on edge like a floor joist. When on edge you have more material further away from the neutral axis and the distance to the outermost fiber from the neutral axis is hugely different. So, mathematically, the 2x8 is stronger on edge than laying flat.
This is why you see floor joists in a house on edge, not laying flat.
Do this to illustrate: take a wooden yard stick and two kitchen chairs. Separate the chairs 34" and put the yard stick on them laying flat. Now push in the center of the yardstick, it will bend. Now, put the yardstick on edge and push in the center, it doesn't bend anywhere near as much! Same yard stick, same force from your hand, but a big difference in strength! Now, one thing to observe with the yard stick on edge is that the ends will tend to twist when you load it. The inherent twisting in a beam on edge is why those 'X' braces are installed on long span floor joists.