Supply Or Demand Side Economics?

  • Supply
    Vote A
  • Demand
    Vote B
  • Both
    Vote C
  • Neither
    Vote D
  • Other
    Vote E
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  • I'm no economist but supply-side makes a whole lot more sense to me in terms of human incentives (including their most unfortunate ones) in order to boost economic output and encourage innovation and efficiency in your particular country without as much temptation for corporate inversion, foreign outsourcing, etc. It also seems to align more with the economic policies of the most developed and successful nations in the world.

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    • I also see miraculous transformations from those who embraced supply-side economic theory, like this, but not so much by moving the other way around:
      https://youtu.be/4f9SZiZ-azU

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    • Watching the video, they mention a zero corporate tax rate, but only on profits re-invested in Estonia (no indication of what rate there is on the rest of the profits), and their flat tax, if it is the one Milton Friedman proposed in his 1962 book Capitalism and Freedom, should include a negative tax rate, which is actually a reasonably progressive tax (people on low incomes receive money from the government).

      Estonia went from being part of the UUSR to a capitalist economy, basically starting at zero, so expansion was the only way to go.

      "More than 71% of the Estonian GDP is derived from the service sectors, [...]. Service sectors experienced a rapid development in the early 1990s as many of them did not even exist in the Soviet economic system."
      www.estonica.org/.../

      Oh, and that 32 year old was not the youngest Prime Minister in Europe's history; William Pitt the Younger was 24 when he became PM.

    • @goaded They actually did implement a form of negative income tax as far as I understand, especially after seeing the unanticipated surplus in tax revenue. Mart Laar is a really interesting in my opinion. He gives a much more in-depth analysis of what happened here:

      https://youtu.be/Lasy0pfn1is

  • Its over 25 years since my last economics class but doesn't supply side economics have inflation fears. While it seems an easy fix, the long term benefits get reduced a lot by the inflation

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    • Supply side could lead to monopolies or some such thing.

    • It's demand side that has the inflation fears. Supply side can lead to greater concentration in an industry, but that happens over time anyway without antitrust/antimonopoly/anticompetitve regulation and, more important, actual enforcement.

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What Girls Said 2

What Guys Said 9

  • Well seems to me what works best is as so often a hybrid taking the best elements of both when you don't have a good balance between the two it becomes somewhat dysfunctional one stifles efficiency the other breeds excessive inequality

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  • Supply and demand is important. But you can't look at them being on either side. The suppliers must have the ability and stress required to innovate while the demanders needs to have the capital to pay as a reward for that innovation.

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  • Supply side economics is bs that doesn't work and just helps the rich. Demand side economics is obviously better but I'm sure there could be something better than it but I'm not an economist so can't say.

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  • “Supply side economics” is bleh.

    Supply side -does- matter more in the long term in terms of raising living standards.

    Demand side is the more volatile piece that drives business cycle.

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  • Supply side works best and every time used it has. Our problem is spending too much. You need Supply Side economics and spending cuts of 50%. That means laying off half of the gov't workers. No one wants to do it, so we are doomed.

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  • Demand... Too little money chasing too many goods and services.

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  • I don't like monopolies so I can't dislike one more than the other. Both.

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  • Supply

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  • for what?

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