Thursday, September 6, 2012

The GOP Plan Is For A Return To Supply Side Economics That Does Not Work

Republican's favor as supply side version of economic cycles.  They favor that approach to business cycles over a demand side version which calls for government spending to compensate for declines in consumption and business investment.  Implicit in the supply side argument is that tax cuts, less government regulation and less government spending is the medicine for moderating the business cycle.
There is little evidence that this works, but it provides the rationale for cutting taxes for the wealthy and for limiting the role of government in areas that don't directly benefit the super-rich.

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