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| | Supply-side economics - Wikipedia, the free encyclopedia |
 | | Supply-side 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 supply-side economics such as Paul Krugman claim that "supply-side economics" was always a smokescreen for politically-motivated tax cuts. | | | Critics of supply-side economics often argue the inflated government deficits that accompanied the arrival of supply-side economics are of greater concern than the economic and stock market success of supply-side theory. |
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http://en.wikipedia.org/wiki/Supply-side_economics
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| | Supply Side Economics |
| | By the time Clinton came to power in 1993, the effects of the supply side 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 response of private savings and labor supply to the Reagan tax cuts was minimal: the labor supply did not increase and the effect on private savings was swamped by the reduction in public savings (the increase in the budget deficit). | | | The reason why supply side effects do not work is very simple: the estimated responses of labor supply and savings to tax rate cuts are too small to generate the extra revenues that would maintain a tax rate cut revenue neutral. |
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http://pages.stern.nyu.edu/~nroubini/SUPPLY.HTM
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| | Supply-side Economics |
| | Typical of this demand is a policy statement by the corporate financed Committee for Economic Development calling for a determined effort "to move toward a phased reduction of the share of government spending in the GNP". | | | The very title "supply side" 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 supply. | | | While the supply side 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 supply because government taxation and regulations have slowed investment. |
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http://www.eco.utexas.edu/homepages/Faculty/Cleaver/304Lsupplyside.html
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| | The Arsenal on NRO Financial |
| | But in measuring, say, supply 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 supply 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. | | | For that matter, the trade deficit is also an artifact of economic fashion: a reflection of where economists currently choose to draw lines in a great circle of transactions. |
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http://www.nationalreview.com/arsenal/arsenal.shtml
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| | supply side economics |
| | Supply side economics is, as its name suggests, concerned with policies affecting the aggregate supply curve. | | | Supply-side economics is concerned with the impact of economic policy on these variables. | | | Beginning in the mid-1970s, some economists (particularly Arthur Laffer and, to a lesser extent Robert Mundell) and economic journalists (particularly Jude Wanniski, then associate editor of the Wall Street Journal) made the argument that the incentive effects of taxes were so large that one could raise tax revenue by lowering tax rates. |
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http://www.fiu.edu/~thompsop/money/classical_model/supply_side_intro.html
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| | supply-side economics |
| | 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. | | | Critics, however, argue that failure of supply to respond to increases in demand may result from the failure of market forces to take account of social costs and benefits. | | | Supply& 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 ‘supply side’ of the economy from responding to increases in demand. |
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http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0031917.html
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| | Fall Semester 2000: Supply-Side University Economics Lesson #4 ; 10-06-00 |
| | As a result, the period 1921-29 was one of phenomenal economic expansion: G.N.P. grew from $69.6 billion to $103.1 billion. | | | 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. |
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http://www.polyconomics.com/searchbase/10-06-00.html
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| | Supply side economics: A Glossary of Political Economy Terms - Dr. Paul M. Johnson |
| | 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. | | | budget deficit and away from the earlier "Reaganomics" preoccupation with accelerating the country's rate of economic growth. | | | aggregate demand in the short-run so as to even out the business cycle, supply-side 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 supply of, and efficient use of, the |
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http://www.auburn.edu/~johnspm/gloss/supply_side.html
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| | supply-side economics on Encyclopedia.com |
| | SUPPLY-SIDE ECONOMICS [supply-side economics] economic theory that concentrates on influencing the supply 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 supply-side suppositions. | | | The theory holds that high marginal tax rates and government regulation discourage private investment in areas that fuel economic expansion, and that more capital in the hands of the private sector will "trickle down" to the rest of the population. |
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http://www.encyclopedia.com/html/s1/supplysi.asp
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| | Say's Law and Supply Side Economics |
| | "Supply side" 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. | | | Although cutting tax rates produced the "seven fat years" from 1982-89, and tax receipts actually did increase, this advice is now commonly disparaged as "tax cuts for the rich" and falsely blamed for growing federal budget deficits in the '80's [6]. | | | What happens to the money supply 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). |
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http://www.friesian.com/sayslaw.htm
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| | Fall Semester 2000: Supply-Side University Economics Lesson #1; 09-15-00 |
| | Supply-side 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-side "Keynesian" school, which focuses on fiscal levers to manage the national economy, and the demand-side "monetarist" school, which focuses exclusively on monetary levers to manage the national economy. | | | Ture was also the Undersecretary for Tax Policy in the Reagan administration, using precisely the same analytic model he used as an assistant to Chairman Wilbur Mills of the House WaysandMeans Committee in 1963. |
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http://www.polyconomics.com/searchbase/09-15-00.html
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| | The Big Picture: 2004: A test of Supply Side economics |
| | What is needed to assess the supply-side 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. | | | For higher income families, a holy trinity of tax cuts put a healthy serving of dollars into their pockets: Tax brackets were cut, capital gains taxes decreased, and an entirely new class of much lower dividend taxes created. |
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http://bigpicture.typepad.com/comments/2003/12/2004_a_test_of_.html
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| | Dem Bloggers :: Supply Side Economics |
| | The governing theory of supply-side 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. | | | And in recent years, Washington has engaged in something of a supply-side experiment, as President Bush and Congress have enacted tax cuts on capital gains, corporate dividends and income taxes. | | | Rising corporate profits and dividend payments clearly haven't trickled down into gains for people who don't own companies or stock, says Dean Baker, co-director at the Center for Economic and Policy Research, in Washington. |
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http://www.dembloggers.com/story/2005/9/3/61431/88425
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| | DLC: The Death of Supply-Side Economics |
| | For years, advocates of supply-side 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. | | | 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 | | | That may actually be the real motivation for Republican fiscal policies, but it's sure to be a loser with the American public. |
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http://www.dlc.org/ndol_ci.cfm?kaid=131&subid=192&contentid=251449
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| | fling93 loves fishies: Supply Side Economics |
| | In a nutshell, increasing taxes will increase revenues if you’re on the left side of the curve, but decrease revenues if you’re on the right side of the curve. | | | However, if we were on the right side of the curve, increasing taxes should lower revenues (the part that supply-siders rarely point out). | | | Well, true as that may be, it totally ignores the fact that this tax cut also increases demand &; the exact effect Dubya was going for to stimulate the economy (this recession was caused by excess inventory — or too much supply). |
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http://fling93.com/blog/archives/economics/2003/supply_side_economics.html
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| | The Rise of Supply-Side Economics |
| | The central concept of supply-side economics is that tax cuts cause economic growth. | | | Mainstream conservative economists generally believe that tax cuts should be accompanied by spending cuts -- that is, fiscal responsibility. | | | He admitted that the 1981 tax cut "was always a Trojan horse to bring down the top [tax] rate" for the wealthy. |
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http://www.huppi.com/kangaroo/23More.htm
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| | Slate - The Dismal Science - August 15, 1996 |
| | The entire annual economics budget at the National Science foundation is less than $20 million. | | | Today, the supply-side label is a clear liability. | | | In its report titled "Reagan Tax Cuts: The Lessons for Tax Reform," the Joint Economic Committee examines the grandfather of Dole's tax plan. |
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http://web.mit.edu/krugman/www/virus.html
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| | A Much-Deserved Triumph in Supply-Side Economics |
| | Never mind that tax revenues actually rose significantly every year of the Reagan administration; the perception is that supply-side economics has been discredited. | | | He advocates reducing top marginal income tax rates, slashing the capital gains tax, and cutting the corporate income tax. | | | 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%." |
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http://www.libertyhaven.com/theoreticalorphilosophicalissues/supplysideeconomics/muchdeserved.shtml
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| | Mises Economics Blog: Inflation and Supply-Side Economics |
| | In economics, he claims, the masses want a massive welfare state, drastic income-tax cuts, and a balanced budget. | | | In the latest money supply report, the M3 measure of money supply surpassed the psychological barrier of $10 trillion. | | | This must qualify as the wackiest economic theory since fellow supply-sider Tom Nugent's idea that budget deficits increase savings. |
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http://blog.mises.org/blog/archives/004212.asp
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| | US economy, supply-side economics, Say’s law |
| | The problem with the supply-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. | | | It therefore follows from the above that any economic policy that focused on consumption at the expense of investment would eventually lower purchasing power, meaning real wage rates. |
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http://www.brookesnews.com/052305sayslaw.html
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| | Wanniski.com |
| | 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. | | | Between those two extremes in tax rates, there are two tax rates (one high and one low) that will produce exactly the same amount of tax revenues at every level. | | | The lower of these two tax rates will achieve higher levels of production, employment and economic growth while producing the same total tax revenues. |
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http://www.wanniski.com/showarticle.asp?articleid=2821
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| | Modern America: Supply Side Economics |
| | In early 2001, the President's Council of Economic Advisors (CEA) announced that if the first round of Bush's $2.1 trillion income tax cuts were passed quickly, it would result in the creation of 800,000 additional jobs by the end of 2002 due to the tax cut alone. | | | "Reagan's theory was really 'trickle down' economics borrowed from the Republican 1920s (Harding-Coolidge-Hoover) and renamed 'supply side.' Cut tax rates for the wealthy; everyone else will benefit. | | | Tax cuts, they argued, would produce so much growth in the economy that America could simply outgrow its deficits. |
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http://modernamerica.blogspot.com/2005/06/supply-side-economics.html
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| | Ecological Economics: Supply-Side 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. | | | 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. | | | NOTE: I am a fiscal conservative (as well a social liberal in some things) and rail against abusive government "borrow and spend" and "tax and spend" schemes in much of my writing, particularly on my Economic Dreams... |
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http://forestpolicy.typepad.com/ecoecon/2006/03/supplyside_sust.html
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| | Understanding Supply-Side Economics |
| | Since supply-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 supply per year. | | | The supply-side 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. | | | Supply-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 supply. |
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http://www.investopedia.com/articles/05/011805.asp
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| | Department of Economics |
| | Questions such as the optimal way to reform Social Security or the appropriate method to deal with the potential risks of global warming do not have easy answers. | | | By explaining and predicting how people act under various circumstances, we can enact policy and create institutions to foster economic growth and solve social problems more efficiently. | | | President and CEO of the Federal Reserve Bank, Dallas, to Speak at 2006 Economics Commencement Ceremony |
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http://www.utexas.edu/cola/economics
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| | WorldNetDaily: Defending supply-side economics |
| | 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." | | | At the end of the process, I guarantee you that you will know a lot more about supply-side economics than you know now. | | | I would do so free of charge, as long as you agree to what I offered that other would-be "guru," Bob Kuttner. |
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http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=22563
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| | Townhall.com :: Columns :: Kerry's economic deficit by Larry Kudlow - Jul 15, 2004 |
| | 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. | | | All this is why Kerry's proposal to raise tax rates on upper-income individuals, small businesses, and key investment categories like capital gains and dividends is so completely out of touch. |
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http://www.townhall.com/columnists/larrykudlow/lk20040715.shtml
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| | 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: |
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http://www.nathannewman.org/log/archives/001902.shtml
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| | Bruce Bartlett on Supply-Side Economics on NRO Financial |
| | Lucas, "The supply-side economists, if that is the right term for those whose research I have been discussing, have delivered the largest genuinely free lunch I have seen in 25 years in this business, and I believe we would have a better society if we followed their advice." | | | The answer is no. A good example is Nobel Prize-winning economist Robert Lucas of the University of Chicago. | | | As long ago as 1987, it published an entire book entitled, Supply-Side Tax Policy: Its Relevance to Developing Countries. |
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http://www.nationalreview.com/nrof_bartlett/bartlett092903.asp
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| | supply-side economics. The New Dictionary of Cultural Literacy, Third Edition. 2002 |
| | An economic theory that holds that, by lowering taxes on corporations, government can stimulate investment in industry and thereby raise production, which will, in turn, bring down prices and control inflation. | | | Supply-siders focus on increasing the supply of goods rather than stimulating demand by granting subsidies to the public. | | | The theory also favors improvements in education and training to make workers more productive and reducing the welfare state to spur individuals to work harder. |
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http://www.bartleby.com/59/18/supplysideec.html
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| | NCPA - Economic Issues - Supply Side Economics |
| | In 1994, in its annual Economic Report, President Clinton's Council of Economic Advisers admitted, "It is undeniable that the sharp reduction in taxes in the early 1980s was a strong impetus to economic growth." | | | Source: Bruce Bartlett, senior fellow, National Center for Policy Analysis, November 3, 1999. | | | NCPA - Economic Issues - Supply Side Economics |
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http://www.ncpa.org/pd/economy/pd110399a.html
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| | Tax Cut Reminiscent of "Trickle-Down" Economics |
| | Reagan said his cut would unleash "the dynamics of the free market," spurring growth, producing more federal revenue and balancing the U.S. budget by 1983. | | | The result was the biggest tax cut in U.S. history: $1.8 trillion over the next nine years. | | | Since tax reductions are immensely popular, Congress jumped on the bandwagon, even though then-Vice President George Bush previously had called supply-side "voodoo economics." A feeding frenzy occurred, with cliques of Congress members giving special write-offs to their favorite industries. |
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http://www.wpi.edu/News/TechNews/010410/taxcut.shtml
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| | Supply-Side Theory |
| | Supply-side theorists advocate income tax reduction because it increases private investment in corporations, facilities, and equipment. | | | Please let us know how we can improve. | | | An economic theory holding that bolstering an economy's ability to supply more goods is the most effective way to stimulate economic growth. |
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http://www.investopedia.com/terms/s/supply-sidetheory.asp
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| | Power and Control: Supply side economics |
| | Over the last 30 years the cost for a given quality/quantity of drugs has fallen. | | | If prices for drugs are raised in the home market fewer people will buy them. | | | However due to the ubiquity of markets socialism can't produce its effects for very long. |
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http://powerandcontrol.blogspot.com/2005/03/supply-side-economics.html
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| | EconLog, Supply-side Economics Archives: Library of Economics and Liberty |
| | In this essay, I explain 2004 economics Nobel Laureate Edward Prescott's views that the Bush tax cuts were too small....... | | | Whoever is writing the lead editorials for the Washington Post (I suspect Sebastian Mallaby) on economic policy issues in this...... | | | (Note: this continues the discussion from Politics vs. Economics.) Another topic on which politics and economics can be separated is...... |
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http://econlog.econlib.org/archives/supplyside_economics
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| | beliefnet: The Gospel of Supply Side Jesus, an excerpt from Al Franken's Lies and the Lying Liars Who Tell Them |
| | Reprinted from Lies: And the Lying Liars Who Tell Them—A Fair and Balanced Look at the Right by Al Franken by permission of Dutton, a member of Penguin Group (USA) Inc. Copyright © Al Franken, Inc., 2003. | | | This excerpt, or any parts thereof, may not be reproduced without permission. | | | beliefnet: The Gospel of Supply Side Jesus, an excerpt from Al Franken's Lies and the Lying Liars Who Tell Them |
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http://www.beliefnet.com/story/132/story_13245.html
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