Supply-side economics

2009-04-09T01:07:48Z

Finmc: removed unsourced claim

'''Supply-side economics''' is a [[macroeconomics|macroeconomic]] concept developed in the 1970's as a counter to the dominant Keynesian macroeconomic theory during the years of [[stagflation]]. Before the early 1980's Keynesian views predominated.

Economist [[John Maynard Keynes]] believed that "demand creates supply" (see [[Law of supply and demand]]). This concept drove many of the ideas behind the recovery from the Great Depression. Government played a role in subsidizing individuals by giving them jobs and therefore an income to have to spend on goods. This "demand-side" theory posited that demand would create supply, and feedback to in turn create more demand.

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 [[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."

Murray Rothbard wrote:
:Specifically, Reagan called for a massive cut in government spending, an even more drastic cut in taxation (particularly the income tax), a balanced budget by 1984 (that wild-spender, Jimmy Carter you see, had raised the budget deficit to $74 billion a year, and this had to be eliminated), and a return to the gold standard, where money is supplied by the market rather than by government. In addition to a call for free markets domestically, Reagan affirmed his deep commitment to freedom of international trade. [http://www.mises.org/story/1544]

==See also==
*[[Laffer curve]]

==References==
<references/>

==External Links==
*[http://www.mises.org/story/1544 The Myths of Reaganomics], by Murray N. Rothbard
*[http://72.14.209.104/search?q=cache:ZQm_5SG3WwQJ:www.davidsmick.com/WSJ070881.pdf+%22Reaganomics%22+includes+the+idea+of+tax+cuts&hl=en&ct=clnk&cd=7&gl=us&client=firefox-a What Reaganomics Is All About]
*http://etext.library.adelaide.edu.au/k/keynes/john_maynard/k44g/
*[http://www.independent.org/publications/tir/article.asp?issueID=15&articleID=89/ "My Time with Supply-Side Economics"], by Paul Craig Roberts
*[http://www.independent.org/publications/tir/article.asp?issueID=20&articleID=231/ "What Really Happened in 1981"], by Alan Reynolds and Paul Craig Roberts

[[Category:Economics]]

Rahm Emanuel

2009-04-09T00:31:10Z

Finmc: removed unsourced quotation

'''Rahm Israel Emanuel''' (b. 1959) is a Democrat who is Chief of Staff to President [[Obama]]. He represented [[Illinois]]' 5th Congressional District in the House of Representatives 2003-2008. As chairman of the Democrats' Congressional Campaign Committee, he took credit for a sharp increase in Democratic membership in the House.

Prior to his election to Congress, he had worked in the Clinton White House from 1993-1998, first serving as Assistant to the President for Political Affairs, and then Senior Adviser to the President for Policy and Strategy. He also worked as a banker in Chicago, and is known for his highly aggressive style. Emanuel served on the board of scandal-plagued quasi-governmental mortgage giant Freddie Mac. <ref>http://online.wsj.com/article/SB122610420534009957.html</ref> While Emanuel was on the Freddie Mac board, the SEC charged that organization with accounting fraud.

In the White House Emanuel's aggressive demands for a stimulus package won passage of the liberals' [[American Recovery and Reinvestment Act of 2009|$789 billion bill]] in February, but alienated Republicans (only three of whom voted for it). His seizure of control of the Census Bureau from the Commerce department led Senator [[Judd Gregg]], a leading Republican, to reverse himself and reject the job of Secretary of Commerce.

==Background==
Emanuel and his wife Ann have three children:, Zacharias, Ilana, and Leah. Emanual has a bachelor's degree from [[Sarah Lawrence College]] (1981), and a master's degree in speech and communication from [[Northwestern University]] (1985). Emanuel's father is Dr. Benjamin M. Emanuel.

==References==
<references/>

[[Category:Former United States Representatives]]
[[Category:Obama Administration]]
[[Category:Democratic Party]]
[[Category:Liberals]]
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Supply-side economics

Rahm Emanuel