It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory.
If a tax cut increases government revenues, you haven't cut taxes enough.
Finally, assuming that many of those are fulfilled, which won't be easy in tight budget times, we're taking the supply side at the basic research level, because that's where government is absolutely fundamental.
After 2003, we lowered taxes across the board. And by 2004, revenue to the federal government grew. In the 1980s, Ronald Reagan cut taxes dramatically. And by the end of the decade, revenue coming in the federal government had doubled.
I used the so-called Laffer Curve all the time in my classes and with anyone else who would listen to me to illustrate the trade-off between tax rates and tax revenues.
I tend to look at things from the supply side, looking for ways to make it less expensive to do more production. I think that's what creates a demand and keeps an economy moving.
In the 1980s and 1990s, radical change in economic policies fostered by Ronald Reagan and Margaret Thatcher put the brakes on government planning and ushered in a new free-market supply-side era and a two-decade boom. That model has been abandoned in the new century. This must be reversed.
It was an absurd theory that by cutting taxes you would increase government revenues, because the growth of the economy would create an overflow of taxes that would fall into the government coffers.
Nor should the argument seem strange that taxation may be so high as to defeat its object, and that, given sufficient time to gather the fruits, a reduction of taxation will run a better chance than an increase of balancing the budget.
This is such music to my ears. James Carville advocating a tax cut to stimulate the economy.
It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them. As Henry Ford said many years earlier: "If I had listened to my customers, I would have built a faster horse." Inventions in general express Shannon entropy. They come from the supply side.
In a two-sided market, focusing on the customer will increase a business's ability to extract value from the supply side.
Take two taxcuts, roll back some regulations, and call me in the morning.
If strong economic conditions can partially reverse supply-side damage after it has occurred, then policymakers may want to aim at being more accommodative during recoveries than would be called for under the traditional view that supply is largely independent of demand.
The potential gains from improved stabilization policies are on the order of hundredths of a percent of consumption, perhaps two orders of magnitude smaller than the potential benefits of available supply-side fiscal reforms.
President Reagan, Jack Kemp and other advocates of supply-side economics understood that pro-growth tax, spending and economic policies were essential to America's long-term economic and fiscal health.
Well, there's no doubt about the fact that, that higher energy prices lead to greater conservation, greater energy efficiency, and they also, of course, play a useful role on the supply side.
Infrastructure projects create a lot of demand for material, services and manpower. It is a chain reaction; if the infrastructure growth slows down, it will hit overall demand. The supply side has to keep increasing to sustain growth.
Someone is going to have to explain to me at some time how raising taxes on job-creators is going to create more jobs.
You don't drive an economy by consuming - the consumer is not the engine, the consumer is the caboose.
An across-the-board, top-to-bottom cut in personal and corporate income taxes ... to expand the incentives and opportunities of private expenditures.
You don't create jobs by passing bills, you create jobs by cutting taxes.
As the Wall Street Journal called our economic plan, supply-side economics for the working man, is resonating in Minnesota and here in Missouri and across this country.
JFK inherited three recessions from the Dwight D. Eisenhower years. And he wound up slashing tax rates across the board, for upper, middle and lower incomes as well as corporate investment. That's Kennedy the Democrat.
Is supply-side economics finished? Only in the sense that General George S. Patton's army was finished in Germany in May, 1945.
