Name:
Location: Pantego, Texas, United States

Wednesday, November 21, 2007

People are often confused by the term "Supply Side Economics." When I hear that I often think of the movie "Field of Dreams:" remember "build it and they will come."

When I was youg my granddad was a supply sider, though he probably never heard that term. I recall that he thought Roosevelt was nuts. People were hungry, and Roosevelt was destroying crops in the fields. The solution to the depression was to cut taxes to increase production and increase trade. Roosevelt did the opposite (as had Hoover).

The opposite to supply side is demand side. It seems to me that during the depression there was plenty of demand, but there wasn't enough product. The argument is made that people had no money, so they couldn't buy what was available. But, if there had been production, people would have had jobs, and so would have had money. During the depression the government should have cut taxes to encourage risk takers to establish businesses instead of putting people on the dole.

0 Comments:

Post a Comment

<< Home