Our BetterMost Community > Chez Tremblay

I need an economics theory

<< < (2/2)

Kd5000:
Supply side economics rests on the assumption that we are overtaxed (google the Laffer Curve). If taxes are reduced, the economy will grow enough to actually increase tax revenue.  Still popular among some Republicans.   Began under Reagan. Given that we have massive deficits, I would say it's been a failure.

Demand sided would say that increased govt spending can put money in ppl's pockets who will then go out and spend it and demand more products, i.e. stimulate the economy.  In vogue in the 1930 with many govt programs to give ppl jobs. The economist John Keynes is given much credit for this line of thinking. It also might result in huge govt deficits, but he said not to worry as in the long run, were all dead!

Both ideas are about giving more wages to the consumer to stimulate the economy.

MaineWriter:
I am laughing a bit that Janice dredged up this old thread, but I appreciate your contributions!

This thread was actually from my second day here at Bettermost (when I was an IMDb refugee). I was writing "A Love Born From Steel" and I actually think I was working on the chapter where Ennis meets Tom Lawrence...and tentatively asks Tom if he is going to pay him for his work. Tom blithely says, "Of course I am, I am an economics professor and I believe in...." and that was the point I needed a theory.

If you haven't read the story yet, and want to know what Tom said, click my banner at the bottom of this message. That will take you to Chapter 1. Enjoy, and please feel free to leave comments...

L

Navigation

[0] Message Index

[*] Previous page