Comments for The Earth Orbits the Sun and Gingrich's Supply Side Economics Doesn't Work at http://www.cepr.net , comment 1 to 5 out of 5 comments http://www.cepr.net Wed, 19 Jun 2013 17:56:47 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/the-earth-orbits-the-sun-and-gingrichs-supply-side-economics-doesnt-work#comment-14456 Gingrich needs a landslide among low-information voters. In the piece the Washington Post increases low-information voters in numbers, while lowering information levels. The general election will contest low-information against di-information voters. - Union Member Fri, 27 Jan 2012 06:14:09 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-earth-orbits-the-sun-and-gingrichs-supply-side-economics-doesnt-work#comment-14455 To state the obvious, if I can borrow money at a lower rate, I can afford to buy a car, boat, vacation, whatever and thereby increase aggregate demand. OTOH, tax cuts, especially for the rich as Gingrich proposes, do not add to consumption demand - Romney makes $20 million/yr; cutting his taxes to zero as Gingrich proposes will not cause him to spend the extra $3 million in his pocket. - PAUL Fri, 27 Jan 2012 04:57:16 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-earth-orbits-the-sun-and-gingrichs-supply-side-economics-doesnt-work#comment-14452 Interest-rate cuts are also supply-side economics. Businessmen are supposed to calculate how much more money they will make if they pay less on borrowed money, and then invest and hire more. In the real world this calculation does not happen because businessmen just don't see sufficient demand to justify expansion at all. In the real world, demand is paramount; only if it is considered to be sufficient will considerations of interest rate, inflation or tax rates come into play. In this post, Dean opposes supply-side economics. In a succeeding one, he will likely argue in favor of supply-side economics in claiming that the Fed can make a difference by changing the inflation target, reducing long-term rates slightly or other action. - skeptonomist Fri, 27 Jan 2012 03:34:07 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-earth-orbits-the-sun-and-gingrichs-supply-side-economics-doesnt-work#comment-14447 Stupid liberals. - izzatzo Fri, 27 Jan 2012 02:06:38 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-earth-orbits-the-sun-and-gingrichs-supply-side-economics-doesnt-work#comment-14445 As Ha-Joon Chang says in his book, supply side tax cuts would only work if there was a stipulation to invest them in growing the economy. - David B. Schuster Fri, 27 Jan 2012 02:05:15 +0100