Saturday, September 29, 2012

In Defense of Supply Side Economics

Lack of aggregate demand is often sited as a problem leading to recessions, and thus the government must compensate for demand losses with stimulus (deficit) spending in order to maintain the status quo until such time as demand recovers.

I demand a Saturn cruise, a cable bill that is only $1.00, and free tacos on Tuesdays.  It's called supply and demand, not demand, and not supply;  however, one can have all the demand in the world...but that doesn't mean the product will ever exist.  Hell, I'd really like a personal robot to iron my clothes.

Supply Comes First. (PERIOD)

I argue that if the government would allow for free unfettered capitalism, we would pull out of our current mess without the monetary and fiscal spending.  Let innovators do what they do, get the EPA, IRS, and OSHA off there backs.  It would encourage jobs which lead to higher wages which lead to increases in aggregate demand via the wealth effect.

This really doesn't seem difficult, perhaps you just need a lack of education to figure it out.

(and for liverals that read this and want to argue the use of the word "unfettered" may I just take a moment to say limitations based on libertarian principles is my definition, but you really need to stop being so nit picky on wording)

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