Supply-Side economics. Why?

m1nt said:
I haven't taken econ classes in a very long time.

The idea is premised on an economic equilibrium point between supply and demand. Increase the supply through lowering taxes or barriers to production, and the equilibrium point will be moved further out on the graph. The price will be lower so more people will be able to consume the item. More people will be working producing the item (full employment).

My Keynesian macro professor showed graphs on how the theory was bunk. Of course, I don't remember them. If anyone could provide supply and demand graphs on how the theory is valid, I would appreciate it.
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Your professor was right!
 
Fervent nationalism is what it is. Protectionism is antagonism and it is back in the long run economically.. everyone is near sighted about it
 
victorycountry said:
Fyi- Ford has cancelled its plan to build a factory in Mexico. Yep, I was right, now Americans' confidence in Trump and US dollar (economy) will grow and Trump's fiscal policy will have a positive impact on US economy whether you hate Trump.

https://www.bloomberg.com/news/arti...-billion-mexico-plant-after-trump-s-criticism
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Have you considered that Hitler produced an economic miracle in Germany the 1930s? (Not saying Trump is another Hitler, Trump is different; possibly worse than Hitler in his potential for destruction of democratic institutions.) Hitler's Germany was a beautiful example of the application of Keynesian economics. But what was the ultimate result? So, we see that there are other things to consider besides the health of an economy. These things are nuanced.
 
piezoe said:
Have you considered that Hitler produced an economic miracle in Germany the 1930s? (Not saying Trump is another Hitler, Trump is different; possibly worse than Hitler in his potential for destruction of democratic institutions.) Hitler's Germany was a beautiful example of the application of Keynesian economics. But what was the ultimate result? So, we see that there are other things to consider besides the health of an economy. These things are nuanced.
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Hitler is not a relevant subject here.
 
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Liberals bring up Hitler because he was the ultimate centralized controller of everything.. morality agriculture everything.. the thing is this is no different then any communist state.. the state becomes the religion... The struggle to fight for the collective is like a religious belief. Mao Hitler Stalin and all other rulers gained power by the force of the state and by sterilizing people's minds to only think a certain way... This country has trended centralist since the civil war.. under the guise of "socialism" or some powerful paternal ruler they all aim to accomplish the same thing.. rise to wealth harrnising the state apparatus.. the state is no religion. It is a vehicle of oppression and has a Monopoly on violence.. the forefathers knew this....Yet every place government has been responsible for restricting itself it has grown anyway. All in the name of the common good...Or the welfare of the people... Take a real look objectively and you will see how murderous states have been . Democracy at times isn't innocent of attrocities.. hell we put Japanese in internment camps.. this was directly and absolutely against the law...
 
cdcaveman said:
Liberals bring up Hitler because he was the ultimate centralized controller of everything.. morality agriculture everything.. the thing is this is no different then any communist state.. the state becomes the religion... The struggle to fight for the collective is like a religious belief. Mao Hitler Stalin and all other rulers gained power by the force of the state and by sterilizing people's minds to only think a certain way... This country has trended centralist since the civil war.. under the guise of "socialism" or some powerful paternal ruler they all aim to accomplish the same thing.. rise to wealth harrnising the state apparatus.. the state is no religion. It is a vehicle of oppression and has a Monopoly on violence.. the forefathers knew this....Yet every place government has been responsible for restricting itself it has grown anyway. All in the name of the common good...Or the welfare of the people... Take a real look objectively and you will see how murderous states have been . Democracy at times isn't innocent of attrocities.. hell we put Japanese in internment camps.. this was directly and absolutely against the law...
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Interesting comments, however have you considered that "this country" is now trending far from "centralist".
 
piezoe said:
Your professor was right!
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I don't feel like rummaging for the textbook, but think I might be able to replicate the graph. I'm sure someone that has taken econ classes recently would be able to do so easily, stay tuned.
 
piezoe said:
Interesting comments, however have you considered that "this country" is now trending far from "centralist".
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it hasn't done anything but centralize.... Trump is a centralist... explain how you believe we are decentralizing... more power to the states and less federal bueros , i don't see that happening
 
m1nt said:
I don't feel like rummaging for the textbook, but think I might be able to replicate the graph. I'm sure someone that has taken econ classes recently would be able to do so easily, stay tuned.
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Oh yes. It is a well known graph. I too have it in my texts. Economic "theories," which are mostly hypotheses rather than theories, depend on assumptions. The problem for economists is that their assumptions often prove to be wrong. Here is one of my favorite examples. When there is hyperinflation economists assume wages will be spent immediately; when there is deflation economists assume wages will be saved until prices are lower. The first assumption holds well, the second does not hold nearly so well, with the exception of high cost, capital equipment, for which purchase is often delayed when there is deflation. The reason the second assumption does not hold with regard to wages is that it runs into two hurdles: one is human nature which favors gratification now; the other is general economic conditions that usually accompany deflation. Economists haven't figured out how to get people to read economic textbooks so they will know how they are supposed to behave.
 
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