Smitty
Hmmmmmmm,
The debate over supply-side economics rages on – it is NOT settled. Here is a good read:
http://money.howstuffworks.com/trickle-down-economics.htm
As John F. Kennedy once said, “a rising tide floats all boats”. Problem is that in this country everyone wants a yacht. Sorry.
How exactly will increasing taxes on the “rich” get us out of this rut? More tax revenue to plow into government make-work projects?
Remember, the “Bush tax cuts” were in place during times of prosperity/low unemplyment too. The Clinton cut the deficit BS is just that – he was the beneficiary of another bubble – the tech bubble – that dramatically inflated tax revenues. It had nothing to do with fiscal policy.
The root of our current problem was the Fed keeping rates so low when the economy was doing so well. The government also played another role in the housing bubble by forcing banks to lend to folks who historically would have never qualified for a loan. In fact, you could actually argue that “regulation” actually got us into this mess.