Changes

Supply-side theory is based on Say's law, which, paraphrased, states that supply creates its own demand.  A simplified version of these ideas were taken up as a popular political movement during the 1980 election campaign, with [[Ronald Reagan]] proposing a modified policy of supply-side economics (although [[liberals]] disparagingly{{fact}} used the term "trickle-down" economics). <ref>[http://www.investopedia.com/articles/05/011805.asp Understanding Supply-Side Economics], David Harper </ref> The decreased regulation begun in the late 1970s, together with lower marginal tax rates would provide enough savings and investment to pool new capital and drive economic growth. Manufacturers for example, would hire more people, produce more, and create more demand and economic activity.  The idea gained wide popular support, and became known as "Reaganomics".  

Supply-side theory is based on Say's law, which, paraphrased, states that supply creates its own demand.  A simplified version of these ideas were taken up as a popular political movement during the 1980 election campaign, with [[Ronald Reagan]] proposing a modified policy of supply-side economics (although [[liberals]] disparagingly{{fact}} used the term "trickle-down" economics). <ref>[http://www.investopedia.com/articles/05/011805.asp Understanding Supply-Side Economics], David Harper </ref> The decreased regulation begun in the late 1970s, together with lower marginal tax rates would provide enough savings and investment to pool new capital and drive economic growth. Manufacturers for example, would hire more people, produce more, and create more demand and economic activity.  The idea gained wide popular support, and became known as "Reaganomics".  

Most criticism came from the Left, but some on the Right was skeptical as well.  [[George H.W. Bush]] during a campaign debate famously referred to it as "[[voodoo economics]]", due to the discarding of [[New Deal]] orthodoxy.  On the Left, it was seen as threat to the [[welfare state]] with the loss of federal revenues in tax cuts that had funded the failed [[War on Poverty]] programs for more than a decade.

Most criticism came from the Left, but some on the Right was skeptical as well.  [[George H.W. Bush]] during a campaign debate famously referred to it as "[[voodoo economics]]", due to the discarding of [[New Deal]] orthodoxy.  On the Left, it was seen as threat to the [[welfare state]] with the loss of federal revenues in tax cuts that had funded the [[War on Poverty]] programs for more than a decade.

One key aspect of the program in 1982 was tax cuts for Research and Development (R&D) in high technology firms intended to make United States more competitive with Japanese electronics manufacturers which had dominated the industry since the late 1960s.  Liberals were critical of the idea, claiming "tax cuts for business" only benefited "the rich"; however, the "trickle down effect" became a flood of prosperity in high tech industries by the mid to late 1990s.

One key aspect of the program in 1982 was tax cuts for Research and Development (R&D) in high technology firms intended to make United States more competitive with Japanese electronics manufacturers which had dominated the industry since the late 1960s.  Liberals were critical of the idea, claiming "tax cuts for business" only benefited "the rich."

Murray Rothbard wrote:

Murray Rothbard wrote: