Topic: How the Politics of Tax cuts are Oversimplified
IgorFrankensteen's photo
Mon 05/28/18 10:42 AM
https://www.usatoday.com/story/money/nation-now/2018/05/27/harley-davidson-layoffs/647199002/

This is an excellent, if difficult to immediately understand, example of why I keep trying to get people to understand how NOT SIMPLE the whole issue of taxes is.

The political CLAIMS of the people who recently drastically altered the way revenues are taken by the Federal Government, said that reducing business taxes dramatically as they did, would nearly instantly result in American businesses expanding, or at least remaining at full strength, and would lead eventually to a return of jobs from overseas.

This wasn't true then, and isn't true now.

I selected this particular story to show things, because it DOES make clear that taxes alone have NOT been the primary reason for especially the larger corporations to reduce American investments. Nor even the local cost of labor, by itself.

It's much more complicated. And so the simple handing of extra cash to business leaders, is NOT the easy fix it has been propagandized to be.

Most of all, notice that the reason why Harley Davidson has been closing factories and moving overseas, has had almost nothing to do with local taxes, or local labor costs.

It has had PRIMARILY to do, with the fall in local American CUSTOMERS.

And tax cuts for either business owners or their associated investors, have never caused CUSTOMERS to want their products more, or to be able to afford them.

Again, proof that "supply side economics" is nonsense.

oldkid46's photo
Mon 05/28/18 05:06 PM
This is a problem from both sides of the political spectrum. They both simplify and create little sound bites to support their positions. The unfortunate cause of this is the inability of most Americans to understand anything as complex as taxes.

oldkid46's photo
Mon 05/28/18 05:12 PM
"And tax cuts for either business owners or their associated investors, have never caused CUSTOMERS to want their products more, or to be able to afford them".

This is not a true statement!! Business owners and corporations do not pay taxes from their own pocket but pay them from the business. In order to pay those taxes and maintain their net margin or income, they increase the price of their product to offset the taxes. While this may not cause a higher desire on the part of their customers, it does result in a lower price for their product than it would have been otherwise.

IgorFrankensteen's photo
Mon 05/28/18 07:07 PM

"And tax cuts for either business owners or their associated investors, have never caused CUSTOMERS to want their products more, or to be able to afford them".

This is not a true statement!! Business owners and corporations do not pay taxes from their own pocket but pay them from the business. In order to pay those taxes and maintain their net margin or income, they increase the price of their product to offset the taxes. While this may not cause a higher desire on the part of their customers, it does result in a lower price for their product than it would have been otherwise.



That would only be true if taxes were the ONLY, or MAJOR part of the way that products and services are priced. I used to be fooled by this falsehood you've swallowed as well.

They are NOT.

Again, the reason why a business expands, is simple: they see more customers than there is product.

That is the lesson of the Harley example: they GOT the lower taxes, and they STILL cut production, because they STILL don't see an increasing customer base.

You can cut taxes all you want on investors and businesses. If people don't increase purchases in proportion to the lowered taxes, which they WILL NOT, since the ability of the customers to buy is NOT affected by the lower business taxes , it is only affected by customer INCOME TO COST OF LIVING shifts.

Supply side economics IGNORES cost of living challenges of the customer class. That is why it's an utter failure as an economic approach.

Tom4Uhere's photo
Mon 05/28/18 08:47 PM
This is all fine and dandy for the economist but as a customer I don't care what the taxes are, If the payout of pocket is more than I am willing to pay, I'm not buying.

As for what taxes are, of that I have no doubt.
Taxes are the ransom I pay before I can take my stuff home.
My money, my goods, rent services or own property.
Taxes is the fee for using money.

Easttowest72's photo
Tue 05/29/18 10:01 AM
Americans are way over taxed. ATL local govt is being investigated for fraud. Our govt needs to be held accountable. Trump donates his salary back to the people and I think it's a great idea. I wish other politicians and former president would give back their salaries or pensions.

IgorFrankensteen's photo
Tue 05/29/18 05:32 PM

Americans are way over taxed. ATL local govt is being investigated for fraud. Our govt needs to be held accountable. Trump donates his salary back to the people and I think it's a great idea. I wish other politicians and former president would give back their salaries or pensions.


Well, he said he does. But he wont reveal any of his finances, so we don't actually know.

And as well, he is making a lot more from the sweetheart deals his corporations are making profits from, because he IS President. I wish he would donate all of THAT income back.

mightymoe's photo
Tue 05/29/18 06:14 PM
Edited by mightymoe on Tue 05/29/18 06:15 PM
Harley-Davidson Inc. shipped more motorcycles to customers outside the U.S. in its latest quarter, even as sales in its home market continued to decline.

The Milwaukee-based company on Tuesday reported that U.S. retail motorcycle sales fell 12% while international sales increased 0.2%. Harley said it shipped 38,797 motorcycles in the U.S. in the quarter, a drop of 15% from the year before. International shipments rose 0.4% to 25,147.

Still, Harley's overall motorcycle-related revenue grew 2.7% to $1.36 billion in its latest quarter as the company has benefited from higher prices for bikes in recent months. Analysts polled by Thomson Reuters had expected revenue of $1.23 billion.
http://www.marketwatch.com/story/harley-davidson-expects-ramp-up-overseas-2018-04-24



So they get a tax cut and raise prices...the American people aren't stupid as you seem to think, Igor.... It has nothing to do with politics or tax cuts, it has to do with value... People aren't gunna pay 30,000 dollars for a motorcycle they can't ride in the rain or snow...

no photo
Tue 05/29/18 07:41 PM
So you're used HD as an example???

Don't.That isn't a high tech company. They've been selling junk for years. They priced themselves out of the market. Then they exported most of their manufacturing out of the country. Most of the parts are shipped in, and assembled here. They're buying a lot of parts from Honda. Showa is selling them forks, shocks, wheels. Brakes, and discs, from another Honda owned company. ( the name, I can't remember) Carbs, Keihin. I've heard also that Honda is making their pistons. I found it funny, several years ago, Harley riders were griping about the bearings in the engines going out. These were the awful Ching Shin bearings. Some were having their engines torn down, and having "quality" Torrington bearings put in them. They were supposedly made in the USA.- Problem- Torrington had gone out of business 15 years prior. What they were getting was another Chinese bearing with the Torrington name stamped on it.(And paying a premium price for them) The company had bought the name. I knew this, because Torrington's home was here in my town.

Harley-Davidson has been bilking their customer base for years.They are their own worst enemy. When they went public with stock, they made enough to buy up Coachman Industries, and drove that company into the ground. ( Another, My home town company)

Harley has been running on a sales pitch for years. That sales pitch isn't working anymore, and they're paying the price now.

IgorFrankensteen's photo
Wed 05/30/18 03:52 AM

So you're used HD as an example???

Don't.That isn't a high tech company. They've been selling junk for years. They priced themselves out of the market. Then they exported most of their manufacturing out of the country. Most of the parts are shipped in, and assembled here. They're buying a lot of parts from Honda. Showa is selling them forks, shocks, wheels. Brakes, and discs, from another Honda owned company. ( the name, I can't remember) Carbs, Keihin. I've heard also that Honda is making their pistons. I found it funny, several years ago, Harley riders were griping about the bearings in the engines going out. These were the awful Ching Shin bearings. Some were having their engines torn down, and having "quality" Torrington bearings put in them. They were supposedly made in the USA.- Problem- Torrington had gone out of business 15 years prior. What they were getting was another Chinese bearing with the Torrington name stamped on it.(And paying a premium price for them) The company had bought the name. I knew this, because Torrington's home was here in my town.

Harley-Davidson has been bilking their customer base for years.They are their own worst enemy. When they went public with stock, they made enough to buy up Coachman Industries, and drove that company into the ground. ( Another, My home town company)

Harley has been running on a sales pitch for years. That sales pitch isn't working anymore, and they're paying the price now.


More support for what I'm saying. Thanks.

Again, this is proof that Supply Side thinking does NOT WORK. As you describe, the reasons for business success or failure are complex, and require a LOT more than high or low taxes on the top people.

no photo
Thu 05/31/18 12:03 PM
How the Politics of Tax cuts are Oversimplified

Or simply not understood while believing one does understand them.

Again, proof that "supply side economics" is nonsense.

Not really.
And in many cases it "proves" that supply side economics is relevant.

Per the article, there's a 60% tariff on assembled motorcycle imports.
According to the article, the U.S. is a declining market.
Not according to the article, Asia is a growing market for motorcycles.

By going to Thailand, HD is leaving a declining market for a growing one, partially motivated by Thailands tax/tariff to move assembly to that region in order to save money. That 60% tariff will not have to be worked into the price as it was before.

The motorcycles in Thailand might not be cheaper, the savings may be used to subsidize the U.S. market to keep from losing customers.
There is nothing in the article comparing how much are the tax savings from the cuts, and how much the 60% tariff actually costs.

Simplified discussions of supply side economics generally revolve around stagnant, local, or closed markets. Not competing dynamic markets in a globalized interdependent setting among competing supply side strategies.


If you want to "understand" oversimplified supply side economics look at states like New Mexico that have huge tax incentives for film companies to come in and shoot there.
Movie companies come in, hire a bunch of local labor, use local resources, etc.

Supply side economics is more about economic activity, not creating "value."
With fiat currency the importance, the market, wealth, is based more on the velocity of money. Getting it moving through the/an market/economy.
Not translating or preserving "value."

One analogy many people use is the German tourist analogy.
Something like a German tourist goes into a hotel. Slaps down a $10 bill and says "I'd like to examine your rooms before I choose to stay." While the tourist is upstairs the hotel owner gives the $10 to the local cook to pay for the prepared food, the cook pays the pig farmer $10 for the meat, the pig farmer pays the traveling salesman $10 for the piglets, the traveling salesman pays the hotel owner $10 for use of a room while he negotiated his sale.
Then the German tourist comes back downstairs and says "sorry, not for me," picks up the same $10 bill and leaves.
That generated economic activity.
Each person in that chain now feels they "made" money, provided a good or service, got paid, whatever.
Take out "German tourist" and put in "tax savings" if you want.

Reducing taxes/pushing money via rates, on individuals or business allows more money to be used in the economy, by the individuals and businesses within the economy, rather than held and controlled by inefficient government. Therefore, greater, more efficient, economic activity.

The main point of supply side thinking, of using government tax cuts and subsidies, is influencing economic activity.
With fiat currency increased economic activity = economic growth.
It's an important point to understand in supply side economic discussions.

tax cuts for either business owners or their associated investors, have never caused CUSTOMERS to want their products more, or to be able to afford them.

I think you are conflating marketing/advertising and supply side economics here.
"Demand" in discussions of theoretical economic theories, like supply side economics, simply means something like "actual number of people that have, will, or would actually purchase the product."
The way "want" is presented here seems like it's being used as an advertising term. Something more like "within a customers heart of hearts what they truly want, having already decided on what will fulfill a perceived need based on known alternatives, that will never ever change because of who they are as people."

Tax cuts that affect businesses, and thereby business owners and investors have led to benefits of increased economic activity which have influenced perceptions of wealth, purchasing power, and product prices, which can increase demand.

The harley davidson article from the OP might actually be relevant or enlightening if there was a follow up detailing the prices in Thailand and Asia of their motorcycles, and if demand for those motorcycles actually increased as a result of their saving that 60% tariff.

The move to and markets in Thailand/Asia kills the article as relevant as an argument against supply side economics in the U.S. market/economy.




IgorFrankensteen's photo
Sat 06/02/18 05:13 AM

How the Politics of Tax cuts are Oversimplified

Or simply not understood while believing one does understand them.

Again, proof that "supply side economics" is nonsense.

Not really.
And in many cases it "proves" that supply side economics is relevant.

Per the article, there's a 60% tariff on assembled motorcycle imports.
According to the article, the U.S. is a declining market.
Not according to the article, Asia is a growing market for motorcycles.

By going to Thailand, HD is leaving a declining market for a growing one, partially motivated by Thailands tax/tariff to move assembly to that region in order to save money. That 60% tariff will not have to be worked into the price as it was before.

The motorcycles in Thailand might not be cheaper, the savings may be used to subsidize the U.S. market to keep from losing customers.
There is nothing in the article comparing how much are the tax savings from the cuts, and how much the 60% tariff actually costs.

Simplified discussions of supply side economics generally revolve around stagnant, local, or closed markets. Not competing dynamic markets in a globalized interdependent setting among competing supply side strategies.


If you want to "understand" oversimplified supply side economics look at states like New Mexico that have huge tax incentives for film companies to come in and shoot there.
Movie companies come in, hire a bunch of local labor, use local resources, etc.

Supply side economics is more about economic activity, not creating "value."
With fiat currency the importance, the market, wealth, is based more on the velocity of money. Getting it moving through the/an market/economy.
Not translating or preserving "value."

One analogy many people use is the German tourist analogy.
Something like a German tourist goes into a hotel. Slaps down a $10 bill and says "I'd like to examine your rooms before I choose to stay." While the tourist is upstairs the hotel owner gives the $10 to the local cook to pay for the prepared food, the cook pays the pig farmer $10 for the meat, the pig farmer pays the traveling salesman $10 for the piglets, the traveling salesman pays the hotel owner $10 for use of a room while he negotiated his sale.
Then the German tourist comes back downstairs and says "sorry, not for me," picks up the same $10 bill and leaves.
That generated economic activity.
Each person in that chain now feels they "made" money, provided a good or service, got paid, whatever.
Take out "German tourist" and put in "tax savings" if you want.

Reducing taxes/pushing money via rates, on individuals or business allows more money to be used in the economy, by the individuals and businesses within the economy, rather than held and controlled by inefficient government. Therefore, greater, more efficient, economic activity.

The main point of supply side thinking, of using government tax cuts and subsidies, is influencing economic activity.
With fiat currency increased economic activity = economic growth.
It's an important point to understand in supply side economic discussions.

tax cuts for either business owners or their associated investors, have never caused CUSTOMERS to want their products more, or to be able to afford them.

I think you are conflating marketing/advertising and supply side economics here.
"Demand" in discussions of theoretical economic theories, like supply side economics, simply means something like "actual number of people that have, will, or would actually purchase the product."
The way "want" is presented here seems like it's being used as an advertising term. Something more like "within a customers heart of hearts what they truly want, having already decided on what will fulfill a perceived need based on known alternatives, that will never ever change because of who they are as people."

Tax cuts that affect businesses, and thereby business owners and investors have led to benefits of increased economic activity which have influenced perceptions of wealth, purchasing power, and product prices, which can increase demand.

The harley davidson article from the OP might actually be relevant or enlightening if there was a follow up detailing the prices in Thailand and Asia of their motorcycles, and if demand for those motorcycles actually increased as a result of their saving that 60% tariff.

The move to and markets in Thailand/Asia kills the article as relevant as an argument against supply side economics in the U.S. market/economy.






My my. Lots of false analogies and some rather weird and imaginative "examples" of how wonderful supply side stuff is there. I especially like the notion that somehow, giving someone a retainer, causes businesses throughout the area to explode into profitable productivity. Absolute nonsense on a cookie, there.

AGAIN. I am NOT saying that having extra money in the pocket of person B instead of it being in the pocket of person A, is inherently "bad."

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

To put it another way:

IF the reason why a given business is not doing as well as it should, is that the business owner hasn't got enough free cash to work with, then allowing him to keep more cash can help. If what's making the business do poorly is the lack of CUSTOMERS, or the inability to pay sufficient wages for the workers to make a living, or because the business owner is a lousy businessman, then lowering his tax burden will at best accomplish nothing at all, and at worst, will reduce the ability of the governing body to assist the businessman in areas where it COULD really help him.

I liken it to the situation where a car is stopped by the side of the road, broken down somehow. The supply-sider comes along and declares that the problem is lack of enough oil, dumps two quarts in, and drives off again, never having noticed the two flat tires, or the fact that now there's oil dripping out of the over-filled engine.

no photo
Mon 06/11/18 11:53 AM
My my. Lots of false analogies and some rather weird and imaginative "examples" of how wonderful supply side stuff is there

Not really. And I don't really think "supply side stuff" is "wonderful."
But even if there were, that's much better than the undeserved condescending arrogance of the response I got.

AGAIN. I am NOT saying that having extra money in the pocket of person B instead of it being in the pocket of person A, is inherently "bad."

Nor is it inherently good.
The conclusion at the end of the OP is "supply side economics is nonsense."
The basis of that is an article that isn't understood, as it mostly disproves what you're saying if you actually understand it.

I addressed that.

You can try telling me "AGAIN" and "AGAIN" and "AGAIN" what you "AM" or "NOT" saying all you like but if you don't really understand what you're saying, I am limited in what I can do beyond facilitating my own entertainment.

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

You don't really mention any "supply side advocates" in the OP.
At best you mention: "The political CLAIMS of the people who recently drastically altered the way revenues are taken by the Federal Government, said that reducing business taxes dramatically as they did, would nearly instantly result in American businesses expanding"

You don't mention any specific names. There is absolutely nothing that denotes these people as actual "supply-siders," or, "supply side advocates," nor "supply side eeconomists" or actual believers in "supply side economics."

A guy telling his friends about the health benefits of sex after having a one night stand with a woman he lied to on the internet doesn't make him an altruist nor a doctor.
Arguing that medicine is "nonsense" based on some vague story about how some people are saying all guys cheat and presenting an article about a girl marrying a foreign bride to prove it, is entertaining more than anything.

You also don't really provide any actual evidence whatsoever that "the political CLAIMS of the people..." are in any way false.

I see nowhere in the OP where it states "would nearly instantly result in absolutely every single American business to expand in obvious ways that directly positively economically influence every single American and only American, ever, with no doubt that nothing would ever change in any way except to the positive in American economic growth every second of every day for the entirety of the existence of America."

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

And I'll say, "AGAIN" (and why you capitalize rather than bold or italicize I'll never know, it is annoying though, it makes it look like online Tourette's), you have not shown anything from any particular supply side advocate, and don't know what you're talking about when you say "supply side economics is nonsense."

At best/worst you've goal seeked an article that you wanted to prove your own bias against an economic theory or group of people, and conflated a bunch of things together, all so you could post something you think you feel smart about but really have no idea what it means.

Just because politicians use supply side rhetoric to justify their behavior, it doesn't mean they are supply side advocates, or economists, or even really know what they're doing.

IMO you've conflated politicians with economists.
Just like I don't think you really understand "demand" in an economic sense by the way you are using it and seem to be conflating that with individual desire, or something more appropriate to marketing/advertising rather than economics.

IMO that's fine. Go nuts with that. People online do it all the time. When you make assertions like "supply side economics is nonsense" that is actually somewhat worth responding to, actually addressing supply side economics.


And "AGAIN" it's funny you accuse me of "false analogies."
What with:
I liken it to the situation where a car is stopped by the side of the road, broken down somehow. The supply-sider comes along and declares that the problem is lack of enough oil, dumps two quarts in, and drives off again, never having noticed the two flat tires, or the fact that now there's oil dripping out of the over-filled engine.

I have read that analogy numerous times, or one very nearly like it.
And in every case "government" has always been used in place of "supply-sider."
It was used a lot when the wars in the middle east were more prominent in the news, it was used a lot when TARP and bailouts were in the news.
What an economist believes, and can prove works, and what the government does and then what it uses to justify what it does, are completely and utterly different things.

Simply changing "government" to "supply-sider" doesn't make an economic theory "nonsense," nor does it even really address supply side economics, nor make an analogy true or work.


Try to figure out what it is exactly you want to talk about.
Because based on the OP it seems you could be addressing one of two things.
Either:
1. Politicians are full of crap and I want to appear smarter than I am!
2. I disagree with an economic theory and believe it's nonsense but don't really understand what I'm talking about!

One of those is interesting.
I chose what I found interesting to respond to.

mightymoe's photo
Mon 06/11/18 12:59 PM

My my. Lots of false analogies and some rather weird and imaginative "examples" of how wonderful supply side stuff is there

Not really. And I don't really think "supply side stuff" is "wonderful."
But even if there were, that's much better than the undeserved condescending arrogance of the response I got.

AGAIN. I am NOT saying that having extra money in the pocket of person B instead of it being in the pocket of person A, is inherently "bad."

Nor is it inherently good.
The conclusion at the end of the OP is "supply side economics is nonsense."
The basis of that is an article that isn't understood, as it mostly disproves what you're saying if you actually understand it.

I addressed that.

You can try telling me "AGAIN" and "AGAIN" and "AGAIN" what you "AM" or "NOT" saying all you like but if you don't really understand what you're saying, I am limited in what I can do beyond facilitating my own entertainment.

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

You don't really mention any "supply side advocates" in the OP.
At best you mention: "The political CLAIMS of the people who recently drastically altered the way revenues are taken by the Federal Government, said that reducing business taxes dramatically as they did, would nearly instantly result in American businesses expanding"

You don't mention any specific names. There is absolutely nothing that denotes these people as actual "supply-siders," or, "supply side advocates," nor "supply side eeconomists" or actual believers in "supply side economics."

A guy telling his friends about the health benefits of sex after having a one night stand with a woman he lied to on the internet doesn't make him an altruist nor a doctor.
Arguing that medicine is "nonsense" based on some vague story about how some people are saying all guys cheat and presenting an article about a girl marrying a foreign bride to prove it, is entertaining more than anything.

You also don't really provide any actual evidence whatsoever that "the political CLAIMS of the people..." are in any way false.

I see nowhere in the OP where it states "would nearly instantly result in absolutely every single American business to expand in obvious ways that directly positively economically influence every single American and only American, ever, with no doubt that nothing would ever change in any way except to the positive in American economic growth every second of every day for the entirety of the existence of America."

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

And I'll say, "AGAIN" (and why you capitalize rather than bold or italicize I'll never know, it is annoying though, it makes it look like online Tourette's), you have not shown anything from any particular supply side advocate, and don't know what you're talking about when you say "supply side economics is nonsense."

At best/worst you've goal seeked an article that you wanted to prove your own bias against an economic theory or group of people, and conflated a bunch of things together, all so you could post something you think you feel smart about but really have no idea what it means.

Just because politicians use supply side rhetoric to justify their behavior, it doesn't mean they are supply side advocates, or economists, or even really know what they're doing.

IMO you've conflated politicians with economists.
Just like I don't think you really understand "demand" in an economic sense by the way you are using it and seem to be conflating that with individual desire, or something more appropriate to marketing/advertising rather than economics.

IMO that's fine. Go nuts with that. People online do it all the time. When you make assertions like "supply side economics is nonsense" that is actually somewhat worth responding to, actually addressing supply side economics.


And "AGAIN" it's funny you accuse me of "false analogies."
What with:
I liken it to the situation where a car is stopped by the side of the road, broken down somehow. The supply-sider comes along and declares that the problem is lack of enough oil, dumps two quarts in, and drives off again, never having noticed the two flat tires, or the fact that now there's oil dripping out of the over-filled engine.

I have read that analogy numerous times, or one very nearly like it.
And in every case "government" has always been used in place of "supply-sider."
It was used a lot when the wars in the middle east were more prominent in the news, it was used a lot when TARP and bailouts were in the news.
What an economist believes, and can prove works, and what the government does and then what it uses to justify what it does, are completely and utterly different things.

Simply changing "government" to "supply-sider" doesn't make an economic theory "nonsense," nor does it even really address supply side economics, nor make an analogy true or work.


Try to figure out what it is exactly you want to talk about.
Because based on the OP it seems you could be addressing one of two things.
Either:
1. Politicians are full of crap and I want to appear smarter than I am!
2. I disagree with an economic theory and believe it's nonsense but don't really understand what I'm talking about!

One of those is interesting.
I chose what I found interesting to respond to.
:thumbsup: laugh great post!

IgorFrankensteen's photo
Fri 06/15/18 04:24 AM

My my. Lots of false analogies and some rather weird and imaginative "examples" of how wonderful supply side stuff is there

Not really. And I don't really think "supply side stuff" is "wonderful."
But even if there were, that's much better than the undeserved condescending arrogance of the response I got.

AGAIN. I am NOT saying that having extra money in the pocket of person B instead of it being in the pocket of person A, is inherently "bad."

Nor is it inherently good.
The conclusion at the end of the OP is "supply side economics is nonsense."
The basis of that is an article that isn't understood, as it mostly disproves what you're saying if you actually understand it.

I addressed that.

You can try telling me "AGAIN" and "AGAIN" and "AGAIN" what you "AM" or "NOT" saying all you like but if you don't really understand what you're saying, I am limited in what I can do beyond facilitating my own entertainment.

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

You don't really mention any "supply side advocates" in the OP.
At best you mention: "The political CLAIMS of the people who recently drastically altered the way revenues are taken by the Federal Government, said that reducing business taxes dramatically as they did, would nearly instantly result in American businesses expanding"

You don't mention any specific names. There is absolutely nothing that denotes these people as actual "supply-siders," or, "supply side advocates," nor "supply side eeconomists" or actual believers in "supply side economics."

A guy telling his friends about the health benefits of sex after having a one night stand with a woman he lied to on the internet doesn't make him an altruist nor a doctor.
Arguing that medicine is "nonsense" based on some vague story about how some people are saying all guys cheat and presenting an article about a girl marrying a foreign bride to prove it, is entertaining more than anything.

You also don't really provide any actual evidence whatsoever that "the political CLAIMS of the people..." are in any way false.

I see nowhere in the OP where it states "would nearly instantly result in absolutely every single American business to expand in obvious ways that directly positively economically influence every single American and only American, ever, with no doubt that nothing would ever change in any way except to the positive in American economic growth every second of every day for the entirety of the existence of America."

I'm AM saying that what is being pushed by supply side advocates is much like what you've posted here: imaginative, not real.

And I'll say, "AGAIN" (and why you capitalize rather than bold or italicize I'll never know, it is annoying though, it makes it look like online Tourette's), you have not shown anything from any particular supply side advocate, and don't know what you're talking about when you say "supply side economics is nonsense."

At best/worst you've goal seeked an article that you wanted to prove your own bias against an economic theory or group of people, and conflated a bunch of things together, all so you could post something you think you feel smart about but really have no idea what it means.

Just because politicians use supply side rhetoric to justify their behavior, it doesn't mean they are supply side advocates, or economists, or even really know what they're doing.

IMO you've conflated politicians with economists.
Just like I don't think you really understand "demand" in an economic sense by the way you are using it and seem to be conflating that with individual desire, or something more appropriate to marketing/advertising rather than economics.

IMO that's fine. Go nuts with that. People online do it all the time. When you make assertions like "supply side economics is nonsense" that is actually somewhat worth responding to, actually addressing supply side economics.


And "AGAIN" it's funny you accuse me of "false analogies."
What with:
I liken it to the situation where a car is stopped by the side of the road, broken down somehow. The supply-sider comes along and declares that the problem is lack of enough oil, dumps two quarts in, and drives off again, never having noticed the two flat tires, or the fact that now there's oil dripping out of the over-filled engine.

I have read that analogy numerous times, or one very nearly like it.
And in every case "government" has always been used in place of "supply-sider."
It was used a lot when the wars in the middle east were more prominent in the news, it was used a lot when TARP and bailouts were in the news.
What an economist believes, and can prove works, and what the government does and then what it uses to justify what it does, are completely and utterly different things.

Simply changing "government" to "supply-sider" doesn't make an economic theory "nonsense," nor does it even really address supply side economics, nor make an analogy true or work.


Try to figure out what it is exactly you want to talk about.
Because based on the OP it seems you could be addressing one of two things.
Either:
1. Politicians are full of crap and I want to appear smarter than I am!
2. I disagree with an economic theory and believe it's nonsense but don't really understand what I'm talking about!

One of those is interesting.
I chose what I found interesting to respond to.


Lots of accusations against me with no supporting evidence, lots of derision,

but zero direct response to the basics.

Supply Side economics, as conducted in the political arena in the US right now (and since the 1980's) says simply that by itself, lowering or eliminating taxes (and the revenues they bring) on businesses and on investors, entirely by itself, regardless of all other factors, will cause the economy to expand across the entire spectrum of elements, including wages, overall wealth of the society, and living standards.

I have shown a specific example of how THAT is not true.

Complain all you like about how you don't like which methods I use to emphasize certain words and phrases, but your fussing about that continues to ignore the actual point of the established discussion.


msharmony's photo
Fri 06/15/18 04:46 AM
I believe government and civics in general are widely oversimplified to keep the 'us vs them' division easier to maintain. 'them bad, us good' ... like Tarzan appeals to the ego, and the selfie age is certainly making ego more of the priority than anything else.

Its too bad school house rock style commercials aren't still being created .... they met the simple enough level to be understood, but yet gave more of the details of how complex certain things were ...


no photo
Fri 06/15/18 10:59 AM
lots of things are oversimplified, the average citizen has no clue about economics, finance etc.

look at how many people can not balance their chequing account?

supply side economics is one of this misunderstood terms and if differs from Administration to administration.

The idea behind it, lower taxes , less regulation means more growth has a history as we seen in the 1920's and the during industrial revolution, mind you America was born during the industrial revolution

The problem with supply side economics is the monetary policies that accompanied it.

Reagan's supply side economics followed a period of high interest rate increases, oil price increases and a monetary policy that consisted of the dollar taken off the gold standard.

prior to that, America was on a gold exchange in the 1920's , during the FDR administration he put the dollar on the gold standard from the gold exchange.

During america gilded age, the monetary policy was gold exchange, followed by congress manipulation of bimetallic standard though various act like the Coinage act of 1873 and followed after the panic of 1873.

Prosperity during the gilded age was because of lower taxes and less regulation but in between there were recessions and busts because of monetary policies, that cannot be blamed on supply side economics

So you are right its oversimplified because the average person doesn't understand the history behind it.