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Conservapedia talk:Featured articles (view source)
Revision as of 05:56, January 20, 2010
, 05:56, January 20, 2010supply v demand
:::::If unemployment rocketed up in the early 80s, it was more a function of Federal Reserve tight monetary policy, rather than Administration or Legislative efforts to reduce the hich cost burden of government on employers and individuals. [[User:RobSmith|Rob Smith]] 23:50, 19 January 2010 (EST)
:::::If unemployment rocketed up in the early 80s, it was more a function of Federal Reserve tight monetary policy, rather than Administration or Legislative efforts to reduce the hich cost burden of government on employers and individuals. [[User:RobSmith|Rob Smith]] 23:50, 19 January 2010 (EST)
::I was not writing about the 1980s, I was looking at the 1930s and said that FDR tried to reduce unemployment by taking millions of people out of the labor force. That is negative supply side. Reagan wanted to create new jobs--that's positive supply side. ("demand side" is when people spend more $ on X,Y,Z --they demand more goods and services--and so companies hire more workers to make more X, Y and Z.)[[User:RJJensen|RJJensen]] 00:14, 20 January 2010 (EST)
::I was not writing about the 1980s, I was looking at the 1930s and said that FDR tried to reduce unemployment by taking millions of people out of the labor force. That is negative supply side. Reagan wanted to create new jobs--that's positive supply side. ("demand side" is when people spend more $ on X,Y,Z --they demand more goods and services--and so companies hire more workers to make more X, Y and Z.)[[User:RJJensen|RJJensen]] 00:14, 20 January 2010 (EST)
:::Reduce unemployment by not counting disillusioned workers who quit actively seeking work -- are you stating here this was a consious objective of FDR & New Dealers?
Demand side is the notion that falling aggregate output (i.e. a recession) is the reflection of falling aggregate demand for goods and services, hence layoffs and unemployment. Classic demand side theory claims government can "stimulate" demand by borrowing money to spend. Supply side relies on increasing incentives to stimulate aggregate output, one way being to reduce the fiscal, or tax burden on producers, that is, employers and workers, by lining thier pockets with more cash as a reward. Either way, the government takes on more debt, only in the supply side model, the debt increase is temporary, as more incentives produce more workers, who in turn produce more demand for more products and services, and more capital for an additional set of workers, etc. This is quite unlike a sinkhole of economic resources like the WPA. [[User:RobSmith|Rob Smith]] 00:56, 20 January 2010 (EST)