Tuesday, May 26, 2009

A supply-side experiment

A comment I left elsewhere:

The Obama administration is conducting an economic experiment on supply side economics. When Reagan entered office, his approach to recovery was to focus on making it more attractive to produce with lower taxes and less regulation. Obama is pursuing the opposite course, to increase taxes and regulation on producers and to make contracts less certain, thereby increasing risk. If we have a vigorous recovery next year and unemployment drops down to what it averaged in the Bush years, the supply-siders will have a hard time making a case for their theories.

No comments: