Changes

:::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)

:::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)