Live and recent posts from across the Fediverse tagged #supplysideeconomics, aggregated by home.social.
GOP tax policy has impoverished America. 40 Trillion debt party.
Trump's cuts have only made it worse. Interest payments on that debt is $1Trillion annually.
Democrats have been the responsible parents growing the economy while making sure they meet the obligations to the poor , disabled and veterans.
Reducing revenue to grow the economy (Laffer Curve, supply side econ. ) has failed miserably . Only communism failed worse.
Republicans Break the Economy, Democrats Fix It—Why Does America Keep Forgetting?
Democrats repeatedly inherit Republican economic wreckage. History, GDP data, jobs, and inflation expose the myth that Republicans manage the economy better.
#barackObama #BillClinton #capitalism #DemocraticParty #Democrats #DonaldTrump #economicGrowth #EconomicInequality #EconomicPolicy #GDP #GeorgeWBush #GreatRecession #incomeInequality #inflation #jobGrowth #joeBiden #KShapedEconomy #Labor #middleClass #PaulWaldman #progressiveEconomics #RepublicanParty #republicans #SupplySideEconomics #trickleDownEconomics #TrumpEconomy #USEconomy #Unemployment #wages #workingClass https://wp.me/p1OjMZ-p2U
https://www.europesays.com/2972302/ Time for Federal Reserve Chairman Jerome Powell to go home | Editorial #DonaldTrump #economics #economies #Economy #ExecutiveBranchOfTheGovernmentOfTheUnitedStates #FederalReserve #FederalReserveSystem #Finance #Inflation #JeromePowell #KevinWarsh #MacroeconomicPolicy #macroeconomics #MonetaryEconomics #money #PoliticalEconomy #Politics #PublicEconomics #SupplySideEconomics
This, precisely, is the problem:
https://www.contrariannews.org/p/america-becomes-outraged-only-when?utm_source=substack&utm_medium=email
#scotus #votingrights #vra #dei #louisiana #alabama #votersuppression #gerrymandering #rigged #cherrypicking #mlk #callaisrequirements #callais #minorityrepresentation #reconstruction #justiceelenakagan #nikolehannahjones #attackondemocracy #votingrightsact #civilwar #confederacy #southernstrategy #supplysideeconomics #trickledowntheory #race #gender #socioeconomicstatus #educationallevel #obbb #nabj #project2025 #heritagefoundation
Republican Governor Admits His Party Is Steering the U.S. Toward Disaster
A Republican governor compares Washington to a car racing toward a cliff—with the GOP driving. The data backs his warning on deficits, growth, and economic mismanagement.
#balancedBudget #BillClinton #Deficits #DemocraticEconomicRecord #EconomicInequality #federalBudget #fiscalPolicy #GOPLeadership #progressiveAnalysis #RepublicanParty #SupplySideEconomics https://wp.me/p1OjMZ-oJq
What Is Supply-Side Economics?
Supply-side economics is an economic theory that emphasizes boosting production as the path to economic growth. Instead of focusing on demand or consumer spending, supply-side theory argues that lowering barriers for businesses, such as reducing taxes and cutting regulations, will lead to more investment, job creation, and overall prosperity. The core belief is that if businesses thrive, wealth will eventually benefit workers and consumers too.
This approach gained popularity in the United States during the late 20th century, particularly under President Ronald Reagan’s administration in the 1980s, where it was commonly referred to as “Reaganomics.”
The Basics of Supply-Side Economics
The foundation of supply-side economics rests on a few key ideas:
Supporters argue that these measures increase the supply of goods and services, which then lowers prices, creates jobs, and grows the economy.
Best selling money books on Amazon
The Laffer Curve and Tax Cuts
A central idea within supply-side economics is the Laffer Curve. This concept suggests that there is an optimal tax rate that maximizes government revenue. If taxes are too high, people and businesses are less motivated to earn and invest. If taxes are too low, the government cannot fund essential services. Supply-side policies often aim to find a middle ground where taxes are low enough to encourage growth but high enough to fund the government.
Criticisms of Supply-Side Economics
Although supply-side economics has shaped U.S. policy for decades, it remains controversial. Critics argue that it disproportionately benefits the wealthy, since tax cuts for high earners and corporations may not always “trickle down” to middle- and lower-income households. Instead, the benefits may concentrate at the top, widening income inequality.
Skeptics also note that supply-side policies can increase budget deficits if tax cuts are not offset by spending reductions or higher growth. For example, when tax revenue falls short, governments often borrow more, which adds to national debt.
How Supply-Side Economics Affects Your Finances
While economic theories can seem far removed from daily life, policies rooted in supply-side thinking can directly influence personal finances:
Understanding these dynamics helps you make more informed decisions about saving, investing, and preparing for future financial shifts.
Supply-Side vs. Demand-Side: The Other Half of the Debate
Supply-side economics has a mirror image: demand-side economics, which argues that growth comes from putting money in consumers’ pockets — through government spending, or tax cuts aimed at lower earners who spend nearly everything they get. Where supply-siders focus on producers and investors, demand-siders focus on shoppers.
Most real-world policy is a mix. The 2017 tax cuts leaned supply-side; the pandemic stimulus checks leaned demand-side. For investors, the useful question isn’t which theory is “right” — economists will debate that forever — but what each policy regime means for taxes, deficits, and interest rates, since those are what actually move markets and your tax bill.
The Deficit Question Nobody Can Dodge
The hardest criticism of supply-side policy is arithmetic: if tax cuts don’t generate enough extra growth to pay for themselves, the gap becomes deficit spending, and deficits eventually mean higher future taxes or higher borrowing costs as the government competes for lenders. That’s not an argument against every tax cut — it’s an argument for watching what happens to the deficit after one. Investors who lived through the 1980s saw the growth; investors in later decades watched the debt pile up. Both lessons are real, and both belong in how you think about capital gains policy and your own planning.
Learning More About Economic Theories
For readers who want to deepen their understanding of economic policy and its impact on money, exploring books on money and economics can be a valuable step. Classics like Economics in One Lesson by Henry Hazlitt offer accessible introductions to how markets function. Pairing this knowledge with practical habits—such as budgeting, frugal living, and investing in the S&P 500—can help you stay grounded regardless of policy changes in Washington.
#Economics #SupplySideEconomics
What is Voodoo Economics?
The phrase “voodoo economics” became widely known during the 1980 U.S. presidential campaign, when George H.W. Bush used it to criticize Ronald Reagan’s economic proposals. Over time, the term has been used more broadly to describe economic theories or policies that sound appealing in theory but lack real-world effectiveness. Most often, it is associated with supply-side economics and the idea that tax cuts for the wealthy will spur enough growth to offset lost government revenue.
Understanding what people mean when they use the phrase “voodoo economics” is useful because it highlights how political rhetoric and economic policy can diverge from measurable outcomes.
The line that started it
The insult landed during the 1980 Republican primary. George H.W. Bush, a Yale-educated oilman running against Ronald Reagan, needed a way to attack Reagan’s central promise: that cutting taxes would unleash enough growth to balance the budget. “Voodoo economics” was his shorthand for budget math he considered magical thinking. The phrase stuck because it was vivid, and it followed Bush for the rest of his career.
The irony is the rest of the story. That July, Reagan picked Bush as his running mate, and Bush spent eight years as vice president publicly defending the very policies he had named. He later raised taxes himself as president in 1990, breaking his “read my lips” pledge, a reversal widely blamed for his 1992 defeat. The origin matters because it shows what the phrase really is: not a technical term, but a political weapon, coined by a man who then had to live inside the contradiction.
The Origins of the Term
In 1980, then-presidential candidate Reagan promoted what became known as Reaganomics. A key component was supply-side economics, which argued that cutting taxes, especially for businesses and high earners, would encourage investment, create jobs, and stimulate economic growth. Critics, including George H.W. Bush during the Republican primary, labeled this “voodoo economics,” suggesting it was based more on wishful thinking than sound fiscal analysis.
While Reagan’s policies did stimulate parts of the economy, they also led to large federal deficits and rising national debt, outcomes critics pointed to as proof of the term’s accuracy.
What It Means Today
Today, “voodoo economics” is used more generally to describe policies that overpromise and underdeliver. Examples include:
The phrase is not a technical economic term, but rather a critique of ideas that appear to be magical solutions to difficult financial problems.
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What the supply-siders got right, and what the data said
Fairness requires saying what the critics of the phrase get right. Incentives matter. Marginal tax rates do change behavior: when keeping an extra dollar of income gets harder, people work, invest, and report income differently. The Laffer Curve, the napkin sketch behind the whole debate, makes a true point at the extremes: a 0% tax rate raises no revenue, and a 100% rate would too, since nobody would bother earning. The argument was never really about whether incentives exist.
It was about the revenue claim, and on that the data has been unkind. Federal debt roughly tripled during the 1980s, from under $1 trillion when Reagan took office to about $2.6 trillion by 1988. The 2017 tax cuts were sold with similar pay-for-themselves promises, and the Congressional Budget Office’s own scoring showed them adding roughly $1.5 trillion to deficits over a decade. The honest version of the supply-side case is “tax cuts can raise growth somewhat.” The voodoo version is “tax cuts pay for themselves.” That distinction, between a real effect and a magical one, is the entire argument in one sentence.
The Psychology of Economic Promises
One reason phrases like “voodoo economics” resonate is that people naturally want easy answers to hard questions. Just as in personal finance, where many look for shortcuts to wealth, voters are often attracted to policies that claim to boost prosperity without requiring sacrifice. This reflects how psychology shapes money decisions—both at the household level and at the level of national policy.
Books on money such as Thinking, Fast and Slow by Daniel Kahneman or Nudge by Richard Thaler explore how biases and optimism can lead people to underestimate risks. When applied to economics, these same tendencies can cause policymakers and citizens to embrace theories that feel good but may not stand up to reality.
What Individuals Can Learn
While national economic policy may be out of your control, there are lessons for personal finance:
Final Thoughts
“Voodoo economics” remains a powerful phrase because it captures the tension between political promises and economic reality. For individuals, the takeaway is clear: stick to time-tested financial principles, question ideas that sound like shortcuts, and focus on building a stable financial foundation.
#Economics #Reaganomics #SupplySideEconomics #Taxes #VoodooEconomics
I am just waiting for a future trillionaire to propose air or sunshine as subscription services. That is what massive wealth in modern supply-driven economies is based on. Identifying the most basic biological need or function you can get away with monetising !
Housing? Hunger? Thirst? Attention? Dopamine? Healthcare? Education? Transportation?
#subscriptions #SupplySide #econimics #SupplySideEconomics #Ecocide #Maslow
The housing crisis is a deliberate govt policy supported by both major parties. There, I’ve said it. Neoliberal supply-side economics is the ideological enabler of those trickle-down policies. As long as property is treated as an investment, a tax minimisation scheme, and not a ‘home’ (which is what it should be), then the housing crisis will not be properly addressed or solved. Ironically, supply-side economics could be used to regulate the housing market, lower prices and increase supply. However, neoliberalism is about controlling supply to squeeze out profits for the grifters who manipulate our capitalist economy.
I get that real estate investment is part and parcel of the GDP metrics, but it is by design that this metric is put up on the alter of national economies. There are better metrics to measure a society’s well-being. There are other ways and means (others know more about this than me) to prosper besides globalisation and market deregulation.
This toot is heading towards ranting /end_rant/
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> Carter was very much a fiscal conservative..
> Carter was a hardcore supply sider... #SupplySideEconomics.. #neoliberalism.. a macro economic theory that effectively wants to foster lower taxes, decreasing regulation and free trade. Right? And so everything that we have organized against just since Seattle, the WTO protest in Seattle is essentially like supply side economics. And it’s the governing philosophy of Carter, Reagan, Bush, Clinton, Bush and Obama and Trump.
#CarterNomics
Dear #GOP, the data irrefutably shows that #Keynesianism works, #SupplySideEconomics doesn’t. Time to admit (after 40 years) that your platform supports a failed economic policy.
Good Morning #Canada
Today is the birth date of Robert Mundell (1932 - 2021), arguably Canada’s most famous economist. Mundell received the Nobel Memorial Prize in Economic Sciences in 1999 for his work in monetary dynamics and optimum currency areas, and is also referred to as the "father" of the Euro. Unfortunately he also pioneered #SupplySideEconomics embraced by President Reagan - lowering taxes to spur the economy.
#CanadaIsAwesome #Economists
https://financialpost.com/news/economy/robert-mundell-nobel-laureate-who-inspired-the-euro-dies-at-88
#SupplySideEconomics have been proven detrimental to our economy. We need to repeal TFG's ridiculous #GOPTaxScam that continues to line the 1%'s pockets, and cripple our government's ability to function. Cutting #Medicare and #SocialSecurity is NOT the answer!
https://heathercoxrichardson.substack.com/p/january-19-2023?utm_source=substack&utm_medium=email
Conned by Republicans as Democrats cede In Budget Deal
President Obama took a lot of flak when he said “I think Ronald Reagan changed the trajectory of America in a way that, you know, Richard Nixon did not and in a way that Bill Clinton did not.” Unfortunately that statement is as true then as it is now.
Americans have been living under Republican policies since Ronald Reagan. It is true that President George Herbert Walker Bush and […]
#Bush #Clinton #Democrats #lafferCurve #Obama #Reagan #republicans #supplySideEconomics