supply side economics?????????

[trey4sports]

I asked my polysci teacher if hes a keynesian and he said no, hes strictly supply side economics. what does that mean?

[Unspun]

Basically the thought goes: if you create tax incentives for people to produce (as opposed to consumer based incentives) that it will create an environment for economic growth. It focuses on the supply curve, rather than the demand curve.

It's usually associated with the Chicago school. Art Laffer, Milton Friedman, Frank Knight, Reaganomics, "trickle-down", etc...

[Mitt Romneys sideburns]

Hes a corporatist.

[trey4sports]

hey, its better than keynes right

[idiom]

Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates. The term supply-side economics was coined by journalist Jude Wanniski in 1975, and popularized the ideas of economists Robert Mundell and Arthur Laffer. Today, supply-side economics is often conflated with the politically rhetorical term "trickle-down economics.

Wiki knows. Its bush tax cuts basically. If you make the rich richer, they will want to make everything cheaper for everybody... yeah...

Supply side economics is why America has a huge deficit, not because a deficit is good (ala Keynes) but because Supply Side Economics failed.

[trey4sports]

Wiki knows. Its bush tax cuts basically. If you make the rich richer, they will want to make everything cheaper for everybody... yeah...

Supply side economics is why America has a huge deficit, not because a deficit is good (ala Keynes) but because Supply Side Economics failed.


he also tried to talk about how deficits and debt isnt bad, because government is a huge ponzi and you never have to pay the principle merely the interest

[idiom]

Ask him what he thinks America will look like when this particular Ponzi scheme unwinds.

[Brassmouth]

I'd kill for a supply-side professor. I'm up to my eyeballs in Keynesians over here.

[Zippyjuan]

Increasing supply does not do much for the economy if there is nobody willing or to buy the product. Would it help Chrysler or GM if the government paid them to increase the production of cars? It would temporarily help the workers who built the cars and the car maker suppliers. But the cars would sit in dealer's lots collecting dust. It would have been more economically effective to give the workers the cash and let them spend it on whatever they wanted instead.

[haaaylee]

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