We are seeing the fulfilling of promises and the restoration of the Government that most Americans actually want.
The last Administration was more interested in undoing the progress we had made in the last few decades by both parties to move into the future. It was sort of a nostalgic ride into a past that never was but where some favored American got very wealthy.
I think some Republicans actually believe in trickle down economics and supply side economics but both are discredited.
Trickle down only works for a very few and supply side is in fact voodoo economics.
The way they interpret it is a bit like a ponzi scheme which suffers from the fact that neither the supply side or the demand side can be extended to infinity.
The theory is fundamentally that reduce prices on the supply side which will increase demand which will further reduce prices and further increase demand etc. etc.
The additional economic activity will result in more and more jobs and a booming economy.
Trouble is that companies are more interested in profit than expanding jobs so the reduced cost from tax breaks ends up as profit, not jobs.
In order to keep demand up you see companies offering upgraded products with new feature using less workers overall as robotics and outsourcing reduce costs.
Think about cell phones, a relatively new market where dominance has gone to the high priced high featured smart phones not to the cheap low feature ones that cost a lot less.
Many of the early entrants have disappeared and while other phones are available only two really dominate. No supply side magic there.
No comments:
Post a Comment