The Daily Scoop: Supply-side economics at core of Gingrich plan


With the economy at the core of the presidential campaign, Newt Gingrich has received help from a group of relatively unknown economic thinkers — including two former advisers to Herman Cain — who share an unwavering faith in the school of thought known as “supply-side economics” that rose to prominence more than three decades ago.

Unlike Mitt Romney, who long ago surrounded himself with mainstream Republican economists, Gingrich has turned to more zealous advisers who believe the only true solution to healing the nation’s deficit is to spur economic growth through sharp tax cuts, reduced regulation and a tight rein on monetary policy, rather than focusing too keenly on spending cuts.
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10 Comments to “The Daily Scoop: Supply-side economics at core of Gingrich plan”

  1. We’ve got the lowest taxes in over 50 years… and the weakest economy. We need more tax cuts!!!!

    • Sorry, I don’t see Mitt’s millions tricking down to create any jobs. Maybe if some of the rich guys would pay to fix the subways in Boston or New York or maybe repave I95 (of any interstate or public transit system), then they would actually create jobs.

      • Good points! I posted these articles back in December. You might find the arguments for why the rich don’t create jobs interesting.

      • If his tax rate went from 15% to 25%, that extra money could be used to repave I95 and create jobs!

      • Michael, simple logic is sometimes the best isn’t it? That money can go right into that infrastructure fund Obama and the Democrats have pushed for. We’d have money automatically set aside for projects across the country building on the momentum we have on the jobs’ front right now.

    • But aren’t tax cuts the solution to all that ails us? 🙂

  2. Newt’s going to solve our problems by cutting taxes for the wealthy, while building a zillion dollar moon station and claiming that government doesn’t create jobs.

  3. What I find true – regardless of being a Republican or a Democrat – is that when someone cannot make their case based on substantive issues that they resort to non-substantive issues, ridicule and name calling.

  4. Thirty years of trickle down economics hasn’t worked; Reaganomics was a vicious attack on organized labor it has crushed the middle class, and it has driven wages through the floor; thus, making the middle class poor while making the rich, richer. This has created a huge gap between the haves and have nots destroying DEMOCRACY.

  5. Mondito, thank you for your comments.

    As more long-term studies and reports like the one reported here about income inequality in the US; http://mashedpotatobulletin.com/2011/12/06/the-daily-scoop-oecd-report-cites-increasing-income-inequality-in-u-s/ the adherence to supply-side policies become increasingly questionable. While during strong economic periods balanced supply- and demand-side policies work well together, it’s the demand side of the equation that requires our focus in this current situation. Continued tax cuts for employers or “job creators” does little to motivate them if there is low demand for the goods and services. The cost savings from a tax cut does not outweigh the costs of hiring someone especially when there is not enough work to hire a new employee.

    When demand is the issue policies geared towards benefiting consumers are needed. This is the route the President and Democrats in Congress have taken. This is the appropriate direction given our situation.

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