Changes

==Criticism==

==Criticism==

Critics of supply-side economics are generally support demand-side economics, usually considered to be part of the [[Keynesian Economics|Keynesian]] school of thought. These critics believe that the capacity for supply is not enough, and that there needs to be demand for goods and services in order to drive the need for supply and create economic growth. They also believe that money in the hands of the middle and lower classes is more effective at creating this demand because their money has more "velocity" (i.e. it gets re-spent more often). Essentially, supply-siders believe supply creates its own demand, whereas demand-siders believe demand is required before supply can create economic growth. Critics of supply-side economics point towards the increasing income gap in the U.S. since Reagan's election<ref>"Winners Take All." February 14, 2011. ''The Economist'' - Free exchange (blog). http://www.economist.com/blogs/freeexchange/2011/02/income_inequality</ref> as evidence of the failure supply-side policies.

Critics of supply-side economics generally support demand-side economics, usually considered to be part of the [[Keynesian Economics|Keynesian]] school of thought. These critics believe that the capacity for supply is not enough, and that there needs to be demand for goods and services in order to drive the need for supply and create economic growth. They also believe that money in the hands of the middle and lower classes is more effective at creating this demand because their money has more "velocity" (i.e. it gets re-spent more often). Essentially, proponents of supply-side economics believe supply creates its own demand, whereas supporters of demand-side economics believe demand is required before supply can create economic growth. Critics of supply-side economics point towards the increasing income gap in the U.S. since Reagan's election<ref>"Winners Take All." February 14, 2011. ''The Economist'' - Free exchange (blog). http://www.economist.com/blogs/freeexchange/2011/02/income_inequality</ref> as evidence of the failure supply-side policies.

Most criticism comes from the Left, but some on the Right have been skeptical as well.  [[George H.W. Bush]] during a campaign debate famously referred to it as "voodoo economics", due to the discarding of Keynesian orthodoxy.  On the Left, it was seen as threat to the [[welfare state]] with the (feared) loss of federal revenues in tax cuts that had funded the failed [[War on Poverty]] programs for more than a decade.  However, Reagan did not significantly cut back on the welfare state (that happened in 1996).

Most criticism comes from the Left, but some on the Right have been skeptical as well.  [[George H.W. Bush]] during a campaign debate famously referred to it as "voodoo economics", due to the discarding of Keynesian orthodoxy.  On the Left, it was seen as threat to the [[welfare state]] with the (feared) loss of federal revenues in tax cuts that had funded the failed [[War on Poverty]] programs for more than a decade.  However, Reagan did not significantly cut back on the welfare state (that happened in 1996).