Thursday, November 15, 2007

If supply-side is good enough for formerly communist countries...

From Stephen Moore in the WSJ, a nice defense of supply-side tax cuts...

Note that "supply-side" refers to reductions in marginal tax rates-- which provide greater incentives to supply work and entrepreneurial energies, to be more productive. Bush cut marginal tax rates slightly-- half of the tax cut; the other half was a Keynesian mail-out of checks which affected demand-side factors like consumption.

1 comment:

Anonymous said...

Keynesian economics seems to depend heavily on government debt.