Aphorism: On Supply-side Economics

By Madison S. Hughes (09.20.2011)

Anytime the responsible idea of increasing taxes, or decreasing subsidies on corporations making record profits during times of economic recession caused by the economic policies implemented by the corporate masters, the specter of the “job creators” raises its ugly head in its usual punctual manner. The spurious “job creators,” especially corporations, have never, ever created a job. That is worth repeating, the spurious “job creators” especially corporations, have never, ever created a job. DEMAND creates jobs, not supply.

The idea that “job creators” create jobs, and must be kowtowed to so that they will give us the privilege of laboring for minimal sustenance is not only absurd on the surface, but it is utterly inconsistent with empirical evidence, particularly since the inception of the neoliberal experiment of the first 9/11 disaster of 1973. Supply-side economics has proven over, and over, to be an utter failure. Repeating supply-side economic mantras does not make them viable.

8 thoughts on “Aphorism: On Supply-side Economics

  1. To a certain extent, absolutely. But the deal wasn’t as good as it could’ve been. A bill that isn’t structured well shouldn’t pass.

  2. I suspect that regardless of whether or not Congress members can read the signs, the lobbyists have them by the collective throat. Why else did they cave in and effectively reject Obama’s tax solutions and instead vote in such a way that forced a partial downgrading of the US Credit rating
    and thereby leaving many worse off? If we could see the downgrading inevitability from the other side of the world I find it hard to believe they took the apparently stupid decision despite their supposedly educated advisors with their MBAs who must surely have warned them.

    • The downgrade was bad, but not that big an issue. And I don’t buy that. There’s little evidence to support your conclusion.

      • It was a big issue. It showed that Republicans, Tea Baggers, and yes, Libertarians (Republicans without the religious constituency) are so beholden to their corporate masters, they are willing to throw the country under the bus without regard to consequence.

  3. One of the serious difficulties for the US in following the excellent advice above is that the system has allowed the development of power blocks whereby organisations and powerful people can buy influence in Congress and the Senate. What organisation would vote for an increase on its own taxes for the good of all? Whether the cooporations will realise that sooner or later the widening gap between the rich and the poor will threaten the very institutions on whose behalf they lobby is a moot point. Perhaps it will not be until US has totally surrendered its number one spot on the economic ladder to China.

    • I think that those in Congress aren’t blind enough to ignore the signs. Lobbying certainly helps the rich, but the prospect of riots that would make the LA Riots look like a day care center is lobbying enough. The only issue is the people (Republicans) who are trying to be completely partisan and be re-elected by refusing any new taxes (which is “funny,” considering that Perry himself raised the franchise tax considerably).

      • The “haves” in Congress absolutely know how to read the signs. The problem is that we, the “have-nots,” naively believe that our interpretations of such are similar, there are not! While there may be signs that clearly indicate something is broken to the “have-nots,” the “haves” may see the problem as an opportunity for profit. Realize that the “haves” have the security industrial complex on their side.

  4. I’m not saying it’s the only measure that should be taken, and that it should be looked upon as the key contributor to the future economic upswing, but it definitely has merit and positive results. When used exclusively to combat unemployment, yes, it’s not successful. But when used in tandem with other means, it can be effective.

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