Supply Side Economics [WAS: Re: [CLUE-Talk] Iraq Stuph]

[Charles Oriez]

At 09:01 PM 4/23/2003 -0600, Randy Arabie wrote:

>On Wednesday, 23 April 2003 at 18:18:32 -0600, Jeffery Cann 
><fabian at jefferycann.com> wrote:



> > Many economists do not agree that a long-term deficit is a good thing.
> > Supply-side economics has not been proven, as some would lead to believe.
>
>It's a *theory*, not a law.  I'm no expert, but I don't think applying
>supply side theory requires that government run deficits.  I do think the
>evidence is pretty clear that lowering the marginal tax rate can result
>in an increase in tax revenue.  Here's a link to one study:


actually, during times of an economic downturn, you are supposed to run 
deficits.  the theory is that surpluses in the rosy times make up for 
it.  Where we went wrong is that we got the deficits during bad times 
right, but not the surpluses in rosy times.