I always thought that the supply-side
, incentive-oriented growth wing of the party had the best and the only way to get more growth in the economy.
Seeing those word--"We're very excited by the trickle-down effect"--actually spoken by a working stiff puts the dissonance and illogic of supply-side
theory in full relief.
Faced with a local supply-side
crisis China is buying huge quantities from the internationally traded market squeezing out many other buyers.
In fact, government attempts to boost demand through fiscal expansion, and the Bank of Japan's attempts to boost demand through low interest rates, have not been merely futile; they have been decidedly counterproductive, because they have prevented the market from addressing the issue of supply-side
Whenever Krugman discusses supply-side
economics, he goes ape, and his latest book is no exception.
The financial markets - which control far more of the country's $7 trillion economy than does the federal government - have cheered the deficit reductions and won't buy the supply-side
approach again, said Sohn Won Sung, chief economist at the Norwest Corp.
The most resolute champion of supply-side
economics is Jude Wanniski, a fon-ner editorial writer for The Wall Street Journal and the force behind Forbes's candidacy.
If new demand for services is to be met, however, existing supply-side
disincentives to entrepreneurship must be eliminated.
He has been among his party's most caustic critics of supply-side
economics, which asserts that tax cuts produces enough economic growth to offset losses in tax revenues.
Alas, that part of the supply-side
vision was quickly falsified by events.