Top-down Economics:

1. People are out of work because the economy is bad.
2. aka "Supply-Side Economics" and "Socialism for the Rich"
   
3. Highlights:
   • Tax cuts for the wealthy
   • 'tinkle-down' wealth
   • growing monopolies
   • increasing national debt
   • law of the jungle markets
4. The solution to economic slumps: wait it out (and give the wealthy more tax cuts)
5. High Times (all featured tax cuts for the wealthy and deficit spending):
   • 1929-1932 (stock market crash, liquidity crisis, 25% unemployment)
   • 1969-1976 (inflation, weakening dollar, wage-and-price controls, 'stagflation')
   • 1981-1992 (sluggish economy, huge market crash in 1987)
   • 2001-2008 (high unemployment, declining average family income, record deficit spending)

Bottom-up Economics:

1. The economy is bad because people are out of work.
2. aka "Demand-Side Economics" and "Capitalism for the People"
   
3. Highlights:
   • Tax policy that WORKS
   • entrepreneurial growth
   • low unemployment
   • paying down debt
   • businesses subject to oversight
4. The solution to economic slumps: create jobs
5. High Times (all started with tax increases or with relatively high taxes):
   • 1933-1940 (economy recovered from disasters of 1929-1932)
   • 1941-1952 (booming economy)
   • 1960-1968 (booming economy)
   • 1993-2000 (longest sustained economic boom in US history)
     

Labels: capitalism, demand-side, market crash, socialism, stagflation, supply-side, Tax cuts for the wealthy

posted by Recovering Republican® © ™  # 12:23 AM 0 Comments