Supply side economics< - Finance Records

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Supplyb>-sideb> economics - Wikipedia, the free encyclopedia

Supplyb>-sideb> economics developed during the 1970s of the Keynesian dominance of economic policy, and in particular the failure of demand management to stabilize Western economies in the stagflation of the 1970s and in the wake of the oil crisis in 1973.
Critics of supplyb>-sideb> economics such as Paul Krugman claim that "supplyb>-sideb> economics" was always a smokescreen for politically-motivated tax cuts.
Critics of supplyb>-sideb> economics often argue the inflated government deficits that accompanied the arrival of supplyb>-sideb> economics are of greater concern than the economic and stock market success of supplyb>-sideb> theory.

http://en.wikipedia.org/wiki/Supply-side_economics (4083 words)



Supplyb> Sideb> Economics

By the time Clinton came to power in 1993, the effects of the supplyb> sideb> policies of the 1980s on the fiscal conditions of the U.S. were clear: the budget deficit in 1992 was 290b US $ or 4.9% of GDP and the public debt to GDP ratio equal to 50.6%.
The reason why supplyb> sideb> effects do not work is very simple: the estimated responses of labor supplyb> and savings to tax rate cuts are too small to generate the extra revenues that would maintain a tax rate cut revenue neutral.
The response of private savings and labor supplyb> to the Reagan tax cuts was minimal: the labor supplyb> did not increase and the effect on private savings was swamped by the reduction in public savings (the increase in the budget deficit).

http://pages.stern.nyu.edu/~nroubini/SUPPLY.HTM (3376 words)



Supplyb>-Sideb> Economics, by James D. Gwartney: The Concise Encyclopedia of Economics: Library of Economics and Liberty

Supplyb>-sideb> economics provided the political and theoretical foundation for a remarkable number of tax cuts in the United States and other countries during the eighties.
Supplyb>-sideb> economics stresses the impact of tax rates on the incentives for people to produce and to use resources efficiently.
During the great tax debate of 1975 to 1986, the opponents of the supplyb>-sideb> view argued that it was unrealistic to expect lower tax rates to lead to increased tax revenues.

http://www.econlib.org/library/Enc/SupplySideEconomics.html (2150 words)



Supplyb>-sideb> Economics

The very title "supplyb> sideb>" suggests that the real issue separating the new economics from the old Keynesian orthodoxy is a shift in the emphasis of policy from the stimulation of demand to that of supplyb>.
While the supplyb> sideb> economists do not, with a few exceptions, take issue with the relevance of this approach in the 1930s, they do argue that subsequent excessive stimulation of demand has restricted the growth of supplyb> because government taxation and regulations have slowed investment.
The supplyb> sideb> program is aimed at breaking this vicious circle forced on capital by the working class, by raising the rate of after-tax profit.

http://www.eco.utexas.edu/homepages/Faculty/Cleaver/304Lsupplyside.html (10382 words)



The Arsenal on NRO Financial

But in measuring, say, supplyb> and demand in the credit markets, much of the federal deficit is offset by the surplus in state- and local-government pension funds.
The national money supplyb> means little when the demand for the dollar is global; a debate raged, and still smolders, over whether money creation takes place in the Eurodollar market.
On the monetary sideb> of the model, a sliding dollar forced President Carter to appoint Paul Voicker chairman of the Federal Reserve in July 1979, and to give him his head on policy in October.

http://www.nationalreview.com/arsenal/arsenal.shtml (3992 words)



supplyb> sideb> economics

Supplyb> sideb> economics is, as its name suggests, concerned with policies affecting the aggregate supplyb> curve.
Supplyb>-sideb> economics is concerned with the impact of economic policy on these variables.
You will recall that in the classical model the level of aggregate supplyb> is determined by the supplyb> of, and demand for, labor, and the amount of capital in the economy.

http://www.fiu.edu/~thompsop/money/classical_model/supply_side_intro.html (672 words)



supplyb>-sideb> economics

Supplyb>& argue that increases in government expenditure to stimulate demand and reduce unemployment, advocated by Keynesians, are ineffective in the long term because intervention distorts market forces and creates inefficiencies that prevent the ‘supplyb> sideb>’ of the economy from responding to increases in demand.
Critics, however, argue that failure of supplyb> to respond to increases in demand may result from the failure of market forces to take account of social costs and benefits.
School of economic thought advocating government policies that allow market forces to operate freely, such as privatization, cuts in public spending and income tax, reductions in trade-union power, and cuts in the ratio of unemployment benefits to wages.

http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0031917.html (317 words)



Fall Semester 2000: Supplyb>-Sideb> University Economics Lesson #4 ; 10-06-00

He can thus maintain his or her standard of living on $80 less in gross wage demands per year, which means it becomes economic for the marginal employer to do business in New York, increasing the number of jobs of all varieties and reducing cost and tax pressure on social services.
Most of the economic failures of this century can rightly be charged to the failure of conservatives to press for tax rates along the lower range of the "Laffer curve." Presidents Eisenhower, Nixon and Ford were timid in this crucial area of public policy.
The most important economic event following World War II was also the work of a finance minister who implicitly understood the importance of the "Laffer curve." Germany had been pinned to the uppermost ranges of the curve since World War I. It took a financial panic in the spring of 1948 to shake Germany loose.

http://www.polyconomics.com/searchbase/10-06-00.html (6282 words)



Supplyb> sideb> economics: A Glossary of Political Economy Terms - Dr. Paul M. Johnson

Supplyb>-sideb> economics became particularly well-known to the general public during the 1980s because of its advocacy by one influential faction of economic policy-makers in the Reagan administration, leading to the use of the term "Reaganomics" to denote many of the ideas of the supplyb>-siders.
aggregate demand in the short-run so as to even out the business cycle, supplyb>-sideb> policy analysts focus on barriers to higher productivity -- identifying ways in which the government can promote faster economic growth over the long haul by removing impediments to the supplyb> of, and efficient use of, the
A school of thought within the economics profession emphasizing that the main source of a country's economic growth is constant improvement in the efficiency with which resources are allocated for production.

http://www.auburn.edu/~johnspm/gloss/supply_side.html (308 words)



supplyb>-sideb> economics on Encyclopedia.com

SUPPLYb>-SIDEb> ECONOMICS [supplyb>-sideb> economics] economic theory that concentrates on influencing the supplyb> of labor and goods as a path to economic health, rather than approaching the issue through such macroeconomic concerns as gross national product.
The subsequent tax increases under Presidents George H. Bush and Bill Clinton and the concurrent corporate investment, economic growth, and drop in unemployment during the 1990s further undercut supplyb>-sideb> suppositions.
Although supplyb> siders maintain that the tax cuts of the 1980s were responsible for the decade's economic growth, critics argue that such policies caused massive federal deficits, penalized the poor and middle class, and induced excessive speculation that severely damaged America's economy.

http://www.encyclopedia.com/html/s1/supplysi.asp (393 words)



Fall Semester 2000: Supplyb>-Sideb> University Economics Lesson #1; 09-15-00

Supplyb>-sideb> economics does not mean "tax cuts," any more than the demand schools represent "tax increases." The purpose of a political system is to allow all of society a way to determine the level of public goods it wishes and how it should assess members of society in financing those goods.
The two so-called mainstream schools are the demand-sideb> "Keynesian" school, which focuses on fiscal levers to manage the national economy, and the demand-sideb> "monetarist" school, which focuses exclusively on monetary levers to manage the national economy.
In a general course of introductory economics, there may be a lesson or part of a lesson devoted to some part of supplyb> theory, but even that is often taken out of context and presented with overtones of eccentricity.

http://www.polyconomics.com/searchbase/09-15-00.html (2620 words)



Say's Law and Supplyb> Sideb> Economics

"Supplyb> sideb>" economics is now associated with Arthur Laffer and his advice in the late 70's that the highest tax rates should be cut, which would free up private capital and produce economic growth, which then would result in higher tax revenues.
Even today, economics is often still thought of in "underconsumptionist" terms -- not often by economists but frequently in politics and in public debate -- and the Los Angeles Times still prints articles to the effect that the basic problem of economics is "how to achieve sufficient demand to absorb available production" [3].
What happens to the money supplyb> is secondary, though it helps to avoid falling wages, since people are not going to like that, whether it really makes any difference or not (and it will increase the value of debt).

http://www.friesian.com/sayslaw.htm (6280 words)



The Big Picture: 2004: A test of Supplyb> Sideb> economics

Thus, Supplyb> Sideb> school of thought -- derided on the campaign trail by Bush the elder as "Voodoo economics" -- now has a golden opportunity to redeem itself.
What is needed to assess the supplyb>-sideb> impact of the Bush tax overall economic policy program is to assess whether those policies have encouraged greater than normal investment in capital of any or all kinds, and whehter that greater than normal investment has worked out to the general benefit of the economy.
An example of fad economics occurred in 1980, when a small group of economists advised Presidential candidate, Ronald Reagan, that an across the-board cut in income tax rates would raise tax revenue.

http://bigpicture.typepad.com/comments/2003/12/2004_a_test_of_.html (2841 words)



Dem Bloggers :: Supplyb> Sideb> Economics

The governing theory of supplyb>-sideb> economics is that slashing taxes on capital gains and income would jolt the economy into life, benefiting people at every level, raising income and ultimately unleashing a gusher of revenue.
Supplyb> sideb> economics is a way of life for them and there is no point in stopping something that is working in their minds.
I was surprised this morning to see that the NY Times ran a story on supplyb> sideb> economics.

http://www.dembloggers.com/story/2005/9/3/61431/88425 (557 words)



DLC: The Death of Supplyb>-Sideb> Economics

For years, advocates of supplyb>-sideb> economics have justified repeated calls for tax cuts for high earners by arguing the cuts will pay for themselves by dramatically boosting economic growth and thus tax revenues.
In an irony as rich as any tax-cut beneficiary, the first publication to really explain the report's significance was the Wall Street Journal, whose editorial page has long been the Pravda of supplyb>-siders, and the source of dozens of columns and editorials demanding dynamic scoring to reflect the "true" impact of big tax cuts.
The only other rationale for perpetual tax cuts that has not already been invalidated by fiscal or economic reality is the "starve the beast" theory that cutting taxes and producing big budget deficits will eventually lead to the devastation of federal investments and programs that Republicans don't have the political courage to propose cutting outright

http://www.dlc.org/ndol_ci.cfm?kaid=131&subid=192&contentid=251449 (608 words)



fling93 loves fishies: Supplyb> Sideb> Economics

Supplyb>-sideb> economics, which is often misunderstood or misinterpreted badly by both sides, but is often used by conservatives against liberals who don’t know enough economics to know they’re being had.
However, if we were on the right sideb> of the curve, increasing taxes should lower revenues (the part that supplyb>-siders rarely point out).
In a nutshell, increasing taxes will increase revenues if you’re on the left sideb> of the curve, but decrease revenues if you’re on the right sideb> of the curve.

http://fling93.com/blog/archives/economics/2003/supply_side_economics.html (1572 words)



The Rise of Supplyb>-Sideb> Economics

The central concept of supplyb>-sideb> economics is that tax cuts cause economic growth.
When candidate George Bush called it "voodoo economics" in the 1980 presidential campaign, he was doing so with the full backing of America's economic community.
Mainstream conservative economists generally believe that tax cuts should be accompanied by spending cuts -- that is, fiscal responsibility.

http://www.huppi.com/kangaroo/23More.htm (1908 words)



Slate - The Dismal Science - August 15, 1996

Today, the supplyb>-sideb> label is a clear liability.
The entire annual economics budget at the National Science foundation is less than $20 million.
Yet the kind of economics covered in the textbooks is a technical subject that many people find hard to follow.

http://web.mit.edu/krugman/www/virus.html (1162 words)



Knowledge Products Audiobooks - Monetarism & Supplyb> Sideb> Economics

Supplyb> sideb> economics, another modern branch of free market economics, emphasizes the harmful role of impediments to production (such as taxes).
Supplyb>-sideb> economists emphasize the role of property rights and of sound currencies in encouraging the growth of production and an improved standard of living.
Robert A. Mundell is often considered the father of this modern school of economic thought.

http://www.audioclassics.net/html/econ_files/monet.cfm (180 words)



A Much-Deserved Triumph in Supplyb>-Sideb> Economics

Never mind that tax revenues actually rose significantly every year of the Reagan administration; the perception is that supplyb>-sideb> economics has been discredited.
Such policies would sharply raise saving rates and economic growth-"an increase in the rate of saving by 5% of income (GDP), say from 10% of income to 15%, would increase the rate of [economic] growth by 50%, i.e., from 2.5% to 3.75%."
According to Jude Wanniski, Mundell, 67, is the theoretical founder of the Laffer Curve.

http://www.libertyhaven.com/theoreticalorphilosophicalissues/supplysideeconomics/muchdeserved.shtml (1066 words)



Mises Economics Blog: Inflation and Supplyb>-Sideb> Economics

This must qualify as the wackiest economic theory since fellow supplyb>-sider Tom Nugent's idea that budget deficits increase savings.
It should also be said that the supplyb> siders if they were to rise to power within the Fed would not apply this rule consistently.
In economics, he claims, the masses want a massive welfare state, drastic income-tax cuts, and a balanced budget.

http://blog.mises.org/blog/archives/004212.asp (1553 words)



Wanniski.com

Supplyb>-sideb> economics is not taught as a comprehensive academic course of study in any institution of higher learning in this country or, indeed, anywhere in the world.
If initially followed, their supplyb>-sideb> economic remedies might have allowed the U. and related economies to avoid the deflationary damage and the equity markets crashes of 2000-2002.
At least this: That the economic insights of one man, Robert Mundell, were the roots and foundation of both the Kennedy tax cuts of 1964 and the tax cuts of the Reagan Revolution in the 80s.

http://www.wanniski.com/showarticle.asp?articleid=2821 (2440 words)



US economy, supplyb>-sideb> economics, Says law

The problem with the supplyb>-siders is that they do not realise that their crude monetary views are dangerously subversive of free markets and that they bring about recessions for which the market always gets the blame.
As for the qualification that goods must be produced in their correct proportions, this was well known to classical economists.
Supplyb> and demand in the aggregate are thus not merely equal, but they are identical [italics added], since every commodity may be looked upon as either supplyb> of its own or as demand for other things.

http://www.brookesnews.com/052305sayslaw.html (548 words)



Modern America: Supplyb> Sideb> Economics

"Reagan's theory was really 'trickle down' economics borrowed from the Republican 1920s (Harding-Coolidge-Hoover) and renamed 'supplyb> sideb>.' Cut tax rates for the wealthy; everyone else will benefit.
Ronald Reagan was a proponent of a theory called ‘supplyb> sideb>’ economics.
Early in his presidency, Reagan chose as his economic advisors a group that espoused a radical economic theory called "supplyb>-sideb>." The supplyb>-siders told Reagan that if he gave tax cuts to the top brackets (the wealthiest individuals) the positive effects would "trickle down" to everyone else.

http://modernamerica.blogspot.com/2005/06/supply-side-economics.html (849 words)



Ecological Economics: Supplyb>-Sideb> Sustainability

Our Ecological Economics web-log is designed to daylight and refine economists’ and ecologists' views, agreements, and disagreements on current environmental and natural resource issues.
And the problem on the other sideb> of the divide is people frame problems too clearly, too narrowly, and allow themselves and others to jump to conclusions that are inappropriate give full contextual consideration.
So it should be no big shock that I agree with this and support levying taxes both to discourage social "bads" and to raise money to fund government.

http://forestpolicy.typepad.com/ecoecon/2006/03/supplyside_sust.html (2478 words)



Department of Economics

President and CEO of the Federal Reserve Bank, Dallas, to Speak at 2006 Economics Commencement Ceremony
The ways in which people respond to incentives can be complex and even counter-intuitive, making the application of economics to the real world difficult.
Also like the other sciences, as theory develops and as the amount and quality of available data increases, economics can make more accurate predictions about a wider range of human behavior.

http://www.utexas.edu/cola/economics (323 words)



Understanding Supplyb>-Sideb> Economics

The supplyb>-sideb> theory is typically held in stark contrast to Keynesian theory, which, among other facets, includes the idea that demand can falter, so if lagging consumer demand drags the economy into recession, the government should intervene with fiscal and monetary stimuli.
Since supplyb>-siders view monetary policy not as a tool that can create economic value, but rather a variable to be controlled, they advocate a stable monetary policy or a policy of gentle inflation tied to economic growth- for example, 3% to 4% growth in the money supplyb> per year.
Supplyb>-siders argue that when companies temporarily "over-produce", excess inventory will be created, prices will subsequently fall and consumers will increase their purchases to offset the excess supplyb>.

http://www.investopedia.com/articles/05/011805.asp (1296 words)



WorldNetDaily: Defending supplyb>-sideb> economics

At the end of the process, I guarantee you that you will know a lot more about supplyb>-sideb> economics than you know now.
My assumption, based on a study of human nature, is that he knows I would embarrass him in such a debate, and he would no longer be considered the new guru on the block.
You must have taken a course in debating when you were in college, as you shrewdly noted the Clinton administration in 1993 had inherited "the Reagan-Bush deficits."

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=22563 (1140 words)



Townhall.com :: Columns :: Kerry's economic deficit by Larry Kudlow - Jul 15, 2004

If it's not bad enough that rapid economic recovery has neutered Sen. Kerry's principal domestic criticism of President Bush, now comes even worse news for the Democratic campaign: The budget deficit is starting to substantially shrink.
Like the modern Democratic Party, the Kerryites neither understand nor acknowledge the tax-incentive model of economic growth that simply restates an old truism: Individuals produce and invest more if it is more profitable after-tax to do so.
But there is virtually no evidence that the budget gap (two-thirds of which emanated from the Clinton recession) has had any negative effect on U.S. recovery prospects.

http://www.townhall.com/columnists/larrykudlow/lk20040715.shtml (906 words)



NathanNewman.org

Even after a year of solid economic growth and booming corporate profits, federal income tax revenues were lower in the fiscal year that just ended than in the year before President Bush took office, according to estimates by the nonpartisan Congressional Budget Office.
Bush's tax cuts have had a bigger impact on the federal deficit than administration officials have often suggested, personal and corporate income taxes are both lower than they were in 2000 even though personal income and corporate profits are both substantially higher.
Let's just say Bush's experiment hasn't added any data in support of the idea that slashing taxes on the wealthy will lead to additional revenue:

http://www.nathannewman.org/log/archives/001902.shtml (586 words)

Topic: Supply side <b>economics<

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