Forum Post: SUPPLY-SIDE ECONOMICS... Overcoming this evil is the key to making America whole and good again.
Posted 13 years ago on Nov. 1, 2011, 8:10 a.m. EST by JGoetz
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SUPPLY-SIDE ECONOMICS IS DESTROYING AMERICA AND JOBS!
Supply-side economics, popularized by Ronald Reagan, was also called Voodoo economics by George Bush41, and is now often known as trickle-down economics. It is nothing new; the people of the Middle Ages were very familiar with supply-side economics; there it was feudalism. Unfortunately, supply-side economics has put us on the road/descent back to feudalism. It is a total fraud!
Think of our future as an economic choice between supply-side economics and demand-side economics. Demand-side economics is what made America great! Demand for product and services came from a large, economically healthy, and growing middle class, and that demand created jobs and economic well-being. Almost everyday the business channel CNBC reports that the consumer is 70% of the US economy. This simple, straightforward fact and truth is proof of our demand-side economy.
But George Bush43 devastated consumer demand and the great middle class with 8 years of supply-side economics and tax giveaway to the top 1% that now have 40% of America’s wealth. Today, the middle class is still flat on its back and unable to spend and create the necessary demand for all types of goods and services. Further confirming the need for demand, US corporations now have a record $2.5 trillion in supply-side cash, but they are still NOT hiring because they see no demand growth for their products and services. No corporation (one exception: Apple/Steve Jobs) creates jobs without first seeing demand. DEMAND = JOBS!
America became great because of its bottom-up economy, NOT top-down or trickle down. The richest Americans can’t grow jobs and our economy by trickling money on us. Bush43’s years of economic stagnation and mediocre job creation proved that! With the worst job creation record of any President in the last 70 years, Bush43 added only 3.7 million net new jobs over 8 years. In contrast, Clinton added 22.7 million jobs over 8 years.
Can we ever overcome the idiocy of Reagan’s economic mythology? In reality, the only recent supply-side economy was the Soviet Union of the 1950s to 1970s. We will soon join those poor people unless we rebuild the middle class with all the tax giveaways given to the 1% in the last 30 years of trickle-down economics.
Quick video about the mother of supply side.
http://www.youtube.com/watch?v=1W8EVczrTyg
See also: http://www.nytimes.com/2011/10/29/opinion/blow-americas-exploding-pipe-dream.html
http://www.businessinsider.com/do-low-tax-rates-on-rich-people-ruin-the-economy-2011-7
http://knol.google.com/k/beyond-a-jobless-recovery "This article explores the issue of a "Jobless Recovery" mainly from a heterodox economic perspective. It emphasizes the implications of ideas by Marshall Brain and others that improvements in robotics, automation, design, and voluntary social networks are fundamentally changing the structure of the economic landscape. It outlines towards the end four major alternatives to mainstream economic practice (a basic income, a gift economy, stronger local subsistence economies, and resource-based planning). These alternatives could be used in combination to address what, even as far back as 1964, has been described as a breaking "income-through-jobs link". This link between jobs and income is breaking because of the declining value of most paid human labor relative to capital investments in automation and better design. Or, as is now the case, the value of paid human labor like at some newspapers or universities is also declining relative to the output of voluntary social networks such as for digital content production (like represented by this document). It is suggested that we will need to fundamentally reevaluate our economic theories and practices to adjust to these new realities emerging from exponential trends in technology and society."
The Richest Man in the World: http://www.youtube.com/watch?v=p14bAe6AzhA "Soon everyone was out of work. The politicians and their suporters said the solution was to lower taxes and cut social benefits to promote business investment. They tried that, but the robots still got all the jobs."
A serious business hypothetical for a serious capitalist-
You have a successful plumbing contracting company. You have 100 employees and after paying all of your expenses and taxes you make a net profit of $1,000,000 - ( $10,000 per employee. )
Republican supply side says:
cut taxes to give you an extra post-tax profit so your income is now $1,100,000. Can you explain why you would use this extra supply of income to hire two more plumbers? And what work would they do?
Or would you do what most American businesses are doing today- Sitting on huge profits because taxes are at historic lows and firing people because demand is low.
Or
Democratic demand side says:
Create demand for plumbing services - say by rebuilding public schools. Will you get part of this new business - and hire ten more plumbers to get your extra $100,000 in profits?
Good analysis.
come on - when I finish my bottle of vintage champagne, I have to trickle down on somebody
Sounds right to me.
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