Supply-side economics is dead.
Last night I was astonished to hear TV commentators say that increased demand for goods and services alone would not be a sufficient factor for job-creators to hire additional workers.
Instead, job-creators first want guaranteed lower taxes; lower worker wages and benefits; lower regulations along with higher corporate profits before they start hiring.
In my opinion, this turns upside-down the old Harvard Business School mantra of “increase the demand for goods and services; then increased supply will follow.”
How did Henry Ford increase the demand for Ford automobiles? He hired more Ford factory workers and paid them wages sufficient for them to become Ford automobile buyers.
We are quickly reaching the precipice of a depression unless job-creators first put people back to work so that they can in turn afford to buy those goods and services they are today doing without.
Wealth does not “trickle down” from the job-creators, wealth “trickles up” from the worker-consumers.
It is a dangerous game the job-creators are playing with America’s economy. Winning at any cost will only result in the loss of our American way of life; the certainty of “life, liberty and the pursuit of happiness” for all, not just for the job-creators.
<IMHO> Fred Jacobsen