There is nothing wrong with Supply Side Economics per se. Both sides of the economic spectrum of Supply and Demand have strategies for stimulus that are legitimate and that work. For supply siders, low taxes, tax breaks for the wealthy and corporations, and low business regulation are supposed to drive business confidence and therefore creates jobs. For demand siders, certain kinds of tax breaks or in bad times economic stimulus are supposed to drive consumer demand by increasing their disposable income. These rather simple explanations of supply and demand side economic theory are just that, simple, but cover the basics well.
We have been in a sustained period where supply side thinking wins the day. Yes, there was a good-sized economic stimulus from the Obama administration recently, and most economists agree it stabilized our economy enough to avoid a depression. However, it was not enough to restart the economy after a terrible shock in 2008. But supply side thinking has dominated our policy making for decades, and it's time we took a good hard look at it's effectiveness.
Supply side theory at the expense of any demand side policy is not generally effective. The GOP mantra that the rich are job creators, and therefore must not be taxed overly, is simply and provably false. Don't take my word for it, read the excellent blog DemandSideEconomics.
It's time the Supply Side thinking got a chance to work. It's certainly better than listening to the blather from the right about "job creators" and the dull rote utterances of GOP lawmakers that "everything Obama does is "job killing". Please.
We have been in a sustained period where supply side thinking wins the day. Yes, there was a good-sized economic stimulus from the Obama administration recently, and most economists agree it stabilized our economy enough to avoid a depression. However, it was not enough to restart the economy after a terrible shock in 2008. But supply side thinking has dominated our policy making for decades, and it's time we took a good hard look at it's effectiveness.
Supply side theory at the expense of any demand side policy is not generally effective. The GOP mantra that the rich are job creators, and therefore must not be taxed overly, is simply and provably false. Don't take my word for it, read the excellent blog DemandSideEconomics.
It's time the Supply Side thinking got a chance to work. It's certainly better than listening to the blather from the right about "job creators" and the dull rote utterances of GOP lawmakers that "everything Obama does is "job killing". Please.
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