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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (6920)	12/15/2005 4:23:16 PM
From: TimF	Read Replies (1) \| Respond to of 542132

I agree that an extensive welfare state doesn't really address the problems of the middle class. (Unless its so extensive the middle class is getting significant amounts of welfare money and than its likely to make things worse rather than better but techinically it would be "addressing the issue", even if in a very unwise way). Supply side does address the middle class, if the economy grows it will create more jobs, but it isn't really a direct attempt to deal with specific problems of the middle class. I think that most people supporting supply side tax cuts would say that in many cases the government shouldn't try to address the workings of the economy to that extent. At least I would say this, I might be wrong about other tax cut supporters. I don't think the middle class is being killed off. So I'm not sure how I would address the question of what to do to prevent the middle class from being killed off. Tim

To: michael97123 who wrote (6920)	12/15/2005 4:28:25 PM
From: TigerPaw	Read Replies (1) \| Respond to of 542132

There is no doubt supply side works strictly in terms of economic growth. Actually there is a lot of doubt that supply side works at all. Many people try to point to a tax cut in John Kennedy's term that was followed by economic gains. There were many things that happened at that time including the baby boomers entering the workforce and the first widespread use of semiconductors. These probably had more to do with economic gains than taxes which are but one of many many costs and constraints on business. All the other tax cutting episodes have been followed by massive deficits which stalled the economy. Tax is way down on the list of things which affect the business cycle. TP