Originally posted by: ProfJohn
Please explain to me how supply side has been discredited.Originally posted by: 0marTheZealot
I've seen this a lot lately, a lot of bashing what Obama has done and is going to do.
How do you propose to address the myriad of problems the United States is facing, given that supply-side economics has been thoroughly discredited as a legitimate way of running an economy? What is the conservative plan for fixing healthcare, education, tax system, etc etc.
Google search: Proof that supply-side is discredited
Top result: Link
Two New Reports Explore the Strange Allure of Supply-Side Economic Policies and the Overwhelming Evidence of Their Failure
Instead they have to do with government interference in the market. Telling banks to give loans to people who shouldn't have gotten loans.
This is a lie.
The more information that comes out, the more clear the picture is that the wrongdoing that caused the current crisis is almost entirely from *the financial industry* who did irresponsible things for short-term gains, enable by their successful lobbying of the right-wing government to NOT regulate them as much.
For example. just today I ran across the report that the FBI was saying *in 2004*, at the height of the Republicans' power, that there serious problems with loan fraud in 80% of the cases initiated *by the lenders*, not the borrowers. Indeed, the reports just publicized show that had the Bush administration had any basic diligence, it would have been able to intervene.
Lijnk
the FBI accurately described mortgage fraud as "epidemic"
nonprime lenders are overwhelmingly responsible for the epidemic
the fraud was so endemic that it would have been easy to spot if anyone looked
the lenders, the banks that created nonprime derivatives, the rating agencies, and the buyers all operated on a "don't ask; don't tell" policy
willful blindness was essential to originate, sell, pool and resell the loans
Also, every time supply side economics has been tried, every time!!, it has worked. JFK cut tax rates and it spurred economic growth, Reagan did it and started the long expansion in history, and when Bush cut tax rates the economy accelerated.
JFK cut the top tax rate *to 70 percent* - in a carefully timed move, not on the basis that cuttting the rate at any time is a good idea. Sure, let's set it at 70%.
Other 'tax cuts' were *tax borrowing* - of COURSE when you run up the national credit card and hand out the cash, it has a positive effect, if you ignore the debt.
"DUh". And that has nothing to do with it being a good idea when you include the effects of the debt (or, in theory, the spending cuts).
The only real debate about supply side economics is whether the increase in economic activity is enough to offset the decrease in tax rates, and that is a VERY hard question to answer.
Studies show that 22% of the tax cuts are returned from increased growth. Not 200%. Not 101%. 22%.
Finally, we tried the liberal way of fixing healthcare, education etc etc in the 60s with the great society and the result was the 70s which were just awful economically.
We had outstanding improvements in society from the JFK/LBJ policies. Nixon was in office for the downturn. You don't mention 'inconvenient facts' like the oil embargo, because you are not being honest, yet again, to try to 'win a debate at whatever cost to the truth'.
One of your problems is how you start out with a conclusion ("Supply side works") and then just cherry pick and misrepresent facts to try to argue.