POLL: Do you believe that supply-side economics is legitimate economic theory?

[MGB]

Quote from piezoe:

I think that's the key point. Regardless of your political persuasion, it must be acknowledged, that from the standpoint of maximizing government revenue, there is probably an optimum tax rate.

You assume that government revenue must be maximized.

I disagree.

Government revenue must be minimized.

 

[bwolinsky]

Quote from jueco2005:

You still need eco 101

Yes, that quote was too stupid for words.

 

[bwolinsky]

Quote from piezoe:

Nice Post!

You also need ECO 101.

 

[MGB]

Quote from 5yrtrader:
when there is no evidence that lower the tax rates from where we are would actually increase government revenue..
[/B]

Yes, we have evidence. The economic expansion in the 80's and 90's occurred AFTER the taxes were lowered.

The deficits occurred because defense spending went up too much.

 

[bwolinsky]

Quote from milktruck:

how would a direct transfer to consumers not allocate the money more efficiently to capitalists via the market?

Go take some econ classes, this doesn't even deserve a response b/c it's such a stupid question.

 

[MGB]

Quote from Mercor:

Demand driven economics creates nothing. It is inflationary by definition. Increasing demand will not automatically mean production increases(stagflation)

Supply side economics means you keep producing, innovating inventing until the price of goods reaches a point to bring in demand.

Agreed.

 

[bwolinsky]

Most of the responses on here are a bit troubling. This particular thread doesn't even understand what supply side economics is, and I recommend that anyone reading this stop here, put anyone that gave the wrong answer on ignore, and move on, b/c their lack of understanding for the theory implies they know nothing about trading. Most of the incorrect answers given show the poster know nothing about economics, let alone the nuances of supply side or demand driven modern macroeconomics.

I would agree this is a political debate rather than something concerning trading.

 

[MGB]

Quote from bwolinsky:
Most of the responses on here are a bit troubling. This particular thread doesn't even understand what supply side economics is, and I recommend that anyone reading this stop here, put anyone that gave the wrong answer on ignore, and move on, b/c their lack of understanding for the theory implies they know nothing about trading.

I would agree this is a political debate rather than something concerning trading.

http://en.wikipedia.org/wiki/Supply_side

http://www.econlib.org/library/Enc/SupplySideEconomics.html

 

[bwolinsky]

Quote from MGB:

http://en.wikipedia.org/wiki/Supply_side

http://www.econlib.org/library/Enc/SupplySideEconomics.html

Great, a wiki. It's not like I'm halfway through the CFA curriculum, but even then, the dumbed down version is far more complex than those pithy articles.

 

[stock_trad3r]

Wikipedia is always a good starting point for research