Changes

::some great questions! 1) on supply side-- I meant the New Deal tried to reduce the supply of labor by taking unemployed people out of the competitive labor market (thru CWA, FERA, CCC, WPA, child labor codes, restrictions on married women, old age pension if you did not work, expelling Mexicans--and by 1940 the draft). For example, a young man on CCC would not be lined up every morning looking for a job.  I am very negative on this approach (see text before footnote 25)  2) subsidies were used in WW2 with great positive effect, and are in use today -- Milton Friedman's negative income tax operates today--and it should have been tried in 1930s but were  not; 3) I specifically meant the 1988 article by Blanchard and Summers, which is not historical but theoretical and extends some of Friedman's work on natural rates of unemployment. [[User:RJJensen|RJJensen]] 01:39, 19 January 2010 (EST)

::some great questions! 1) on supply side-- I meant the New Deal tried to reduce the supply of labor by taking unemployed people out of the competitive labor market (thru CWA, FERA, CCC, WPA, child labor codes, restrictions on married women, old age pension if you did not work, expelling Mexicans--and by 1940 the draft). For example, a young man on CCC would not be lined up every morning looking for a job.  I am very negative on this approach (see text before footnote 25)  2) subsidies were used in WW2 with great positive effect, and are in use today -- Milton Friedman's negative income tax operates today--and it should have been tried in 1930s but were  not; 3) I specifically meant the 1988 article by Blanchard and Summers, which is not historical but theoretical and extends some of Friedman's work on natural rates of unemployment. [[User:RJJensen|RJJensen]] 01:39, 19 January 2010 (EST)

:::Ok, so this use of the term "supply side" differs from what supply side is.  Supply side refers to the importance of incentives to stimulate economic output, rather than classic Keynsian measurements of aggregate demand to determine "stimulus".  [[User:RobSmith|Rob Smith]] 07:43, 19 January 2010 (EST)

:::Ok, so this use of the term "supply side" differs from what supply side is.  Supply side refers to the importance of incentives to stimulate economic output, rather than classic Keynsian measurements of aggregate demand to determine "stimulus".  [[User:RobSmith|Rob Smith]] 07:43, 19 January 2010 (EST)