Supply Side Economic OVERLOAD coming via GOP

FAH1223

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Tax cuts for the rich, for corporations from 35% to 15%, infrastructure plan that involves billions in tax subsidies to build toll roads, a huge budget deficit, increased interest rates, and inflation

Something to think about:

Prior to 1933 we had public policy dominated by "supply side bias" policy bias.

After 1933 we increasingly switched to a demand side bias policy bias.

From 1945 to 1980 we had demand side bias policy bias.

Since 1980 we have had supply side bias policy bias.

When you hit demand side bias saturation you get inflationary stagnation.

When you hit supply side bias you get deflationary stagnation...

... and investment bubbles

... and demands for financial deregulation (because deflationary stagnation also pushes interest rates down and makes it hard to get high ROI, and so investors demand access to unorthodox investing (payday loans, unsecured credit loans, subprime loans) in hopes of finding higher ROI.

We hit supply side saturation in 1998 with the dot com bubble. By 2001 we should have switched back to demand side economics. But instead the Bush administration quad-trippled down on supply. The result was the complete collapse of demand in 2008.

Its been 16 years since we hit supply side saturation yet we are still in a supply side bias policy bias era.

Bernie was the only candidate openly espousing demand side bias economic policies.

The economy has created less than 15 million jobs since 1998: legal (not illegal) immigration was 10 million just in the Obama years.
 

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DEAD7

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During the presidential campaign, Donald Trump promised the biggest tax cut since Ronald Reagan's conservative revolution swept into Washington in the 1980s.

:pachaha:
 

Dr. Acula

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I've never seen an example of a company say they suddenly want to hire more staff based on simply having more money to do so.

It's always been "man we're getting slammed with the increased demand and our current workforce isn't enough, so let's hire more people". All this encourages is for companies to hoard profits, not reinvest in the business since there is not an increase in demand. Also given he is looking to get rid of things like single family deductions, and do little to help lower and middle class, consumption will decrease and that would lead to further job loss.

OMFG I hate this stupid ass country. :damn:
 
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Jhoon

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Bernie Mac coined this economic theory years ago. I'm going to get mines, you better get yours.
 

DonKnock

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I've never seen an example of a company say they suddenly want to hire more staff based on simply having more money to do so.

It's always been "man we're getting slammed with the increased demand and our current workforce isn't enough, so let's hire more people". All this encourages is for companies to hoard profits, not reinvest in the business since there is not an increase in demand. Also given he is looking to get rid of things like single family deductions, and do little to help lower and middle class, consumption will decrease and that would lead to further job loss.

OMFG I hate this stupid ass country. :damn:


They tried this in Kansas and the result was that CEOs kept all the extra money for themselves. :francis:

It really is mind boggling that people will go alone with the idea that the same executives that will shut parts of their operations down and relocate overseas to save money are going to magically become charitable enough to start giving back to their workers if they aren't legally obligated to. :scust:
 
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