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

To: Mary Cluney who wrote (94144)	11/5/2008 5:26:35 PM
From: spiral3	Respond to of 541908

Great post Mary. There are two things very wrong with supply side thinking as we've seen it implemented. First is, it's made up by people who don't believe in govt involvement in the first place, so what on earth are they doing telling us that this is what the govt should do. Second thing is it just doesn't account for stunning success of State Capitalism all throughout Asia. State directed economies have simply achieved growth rates that are probably incapable of being challenged by capitalism under Democracy. What future for the Republic ?

To: Mary Cluney who wrote (94144)	11/5/2008 5:26:46 PM
From: TimF	Respond to of 541908

We have tried this right wing supply side, trickle down, economics the last eight years. Not really. We've spent a lot more over the past eight years. It does not work. It was one of the few things that has worked. Other government actions (going back at least as far as Carter or perhaps to FDR, and going forward to include Bush, and all the congresses over those years) lead to mortgage problems. Bush's spending led to increased government borrowing. Bush's regulation (such as Sarbanes-Oxley) added cost for busineses. All sorts of government action, including action initiated by Bush or pushed by him, didn't work. But those actions are different things from tax cuts. More generally the idea that we cut taxes at one point, then 5 years later you have a financial crisis, as an argument that tax cuts don't work is ridiculous. There is no connection from the former to the later.