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Britestar

Supply siders. Do you want to continue your prosperity, even if the Democrats take office?

Just post your desires, here, and I will be glad to supply you with a list of the rich people in your area, you can send your money to.
Russ:

Hi, Gary.
Supply side theory makes some sense when both the supply of goods and services and the demand for them are under the control of the taxing authority who lowers the marginal rates which may trigger the increase of supply.
With globalization of supply, more and more of it is outside the taxing authorities reach, so that a reduction of taxes yield a lower and lower increase in taxable economic activity.

Russ:

Is that Allan Greenspan enough for you? Phew !

Britestar:

Hello, russ. Well, since taxes won't be involved, it should work, right?

Russ:

No. When supply comes from China or India, for example, the benefit of increased profits only go to those who have the wealth to have investments in those companies, through higher EPS and Dividends, and that tends to remain in their portfolios,and taxed under much lower capital gains rates.

Britestar:

So, you are saying that even if we give the rich in our areas the money, they will either invest it overseas, or invest it here, and the business will fail because we choose to buy our products from overseas. I sure hope that Harvard Economics 101 course covered that. Thanks, for a good answer to a stupid question.

Russ:

I doubt the geniuses in business schools study common sense economics on any level.

Ginger:

Supply side economics makes the suppliers wealthy. Consumers are on their own.

Reagan hit the nail on the head when he called it the trickle down theory. I'm sure getting tired of being trickled on.

Russ:

Amen. We get the trickle, they get the treat.

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