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  • supply side economics

    Fact-Checking President Obama on "Trickle-Down" Economics

    In a recent speech in Kansas, President Obama launched a diatribe against “trickle-down” economic policies. Not only did President Obama mischaracterize conservative tax policy, but facts rebut his claim that these policies have been a failure. The President began by invoking his understanding of conservative economic philosophy: “If the winners … More

    Morning Bell: Whitewashing History, Obama Style

    If U.S. history is a painting on a giant canvas, President Barack Obama’s speech this week in Osawatomie, Kansas, is a thick coat of whitewash layered all over it, and the failure of the last three years lies underneath. The President’s pretense is that, no, it’s not Obamanomics that has … More

    Podcast: Keynes vs. Hayek

    Make sure to listen to a recent radio interview with Nicholas Wapshott, author of the new book, “Keynes Hayek: The Clash That Defined Modern Economics.” What was the relationship between Keynes and Hayek really like? Why did Keynesian thought dominate from WWII until 1980? Why did Hayekian thought dominate from 1980 … More

    Tax Cuts and Supply-Side Effects

    Lawmakers have recently paid lip service to cutting the corporate tax rate to help boost economic growth. Doing so would be good policy, but it’s important to know why. Information disseminated by both political parties, think tanks, government organizations, media outlets, and political pundits has confused the issue, leading many … More

    Supply and Demand, Part II: The Money Supply

    My recent post explained why President Obama’s newly proposed $447 billion spending package aimed at boosting total demand is doomed to fail. Some commenters offered a challenge to that assertion. The basis for assessing the spending package: Economic growth is determined by the supply side of the economy, beginning with … More

    Does Supply Create Demand?

    Which comes first: supply or demand? This question has serious policy implications, especially as President Barack Obama proposes $447 billion in additional stimulus spending in order to try to spur job growth in America. “Demand-siders,” also known as Keynesians (after influential economist John Maynard Keynes), insist that short-run economic fluctuations … More

    Don't Call It a Comeback

    The New York Times has an article out today titled: “A Political Comeback: Supply-Side Economics” that asserts “the big supply-side tax cuts of the 1980s and the 2000s did not work as advertised.” While there is no hope that the Times will ever grasp the concept that lower tax rates … More