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I wanted to ask this honest question because as a conservative I don't fully understand why liberals wouldn't support supply side economics. Supply side economics means that if there is more of something, the price of it would go down, which ultimately helps the poor the most. The second thing about supply side economics is that if there is more job creation, then there will be more wage growth which also helps the poor the most. Why wouldn't liberals support supply side economics?
Lower consumer prices are not always a good thing. They lead to over consumption and are used to price out domestic production. The more domestic production (local farms, factories, etc.) are diminished the more dependent the market is on foriegn suppliers and financial speculators.
Finance drives up the price of goods with low elasticity (public goods like education, housing, and medicine) and lowers prices of consumer goods. See this graph for the overall trend: https://ourworldindata.org/grapher/p...7?country=~USA
Job creation is another thing. You can have many low paying jobs which hypothetical would increase wages, but it also increases labor shortage.
When you have a labor shortage either wages go up OR new workers are brought in to replace the older workers. These new workers are easier to exploit, usually are immigrants or illegals who don't speak the native language, and can increase cultural tensions within a state or region.
Either way, there are adverse affects to supply-side economics since society is more than just a spread-sheet of facts and figures. On the surface an increase in $$ investments can look good, but it can also create structural problems.
I wanted to ask this honest question because as a conservative I don't fully understand why liberals wouldn't support supply side economics. Supply side economics means that if there is more of something, the price of it would go down, which ultimately helps the poor the most. The second thing about supply side economics is that if there is more job creation, then there will be more wage growth which also helps the poor the most. Why wouldn't liberals support supply side economics?
Because it cuts jobs and wages in the end. This started with Reaganomics and the greenmail and junk bonds that happened during it. In the 90's more firms offshore and starting outsourcing. Not that Chinese and Taiwanese products were new, there just were more. This has not produced more jobs, let alone higher paying jobs.
I wanted to ask this honest question because as a conservative I don't fully understand why liberals wouldn't support supply side economics. Supply side economics means that if there is more of something, the price of it would go down, which ultimately helps the poor the most. The second thing about supply side economics is that if there is more job creation, then there will be more wage growth which also helps the poor the most. Why wouldn't liberals support supply side economics?
Its not the more of something that makes price go down. Its more competition that makes price go down. You cant just create jobs without demand for the business that will employ these jobs. How will the business pay the workers?
I wanted to ask this honest question because as a conservative I don't fully understand why liberals wouldn't support supply side economics. Supply side economics means that if there is more of something, the price of it would go down, which ultimately helps the poor the most. The second thing about supply side economics is that if there is more job creation, then there will be more wage growth which also helps the poor the most. Why wouldn't liberals support supply side economics?
Excellent question.
Avondalist has it right-- Libs oppose Supply Side because that fits their narrative. of "being on the side of The Little Guy."...In fact, The Little Guy is helped more by Supply Side Economics.
Keynesian Economics (govt dumps money into the economy) is inflationary (Try going to the used car lot and tell the salesman exactly how much you are going to spend)-->inflation decreases demand which means fewer workers are needed to produce goods & services.
Other answers given point out factors involved in the dynamics (ie- constantly changing & adjusting) of the economy, but don't apply only to supply side theory.
As they say-- when you need a job, you don't go to a poor guy for it.
I wanted to ask this honest question because as a conservative I don't fully understand why liberals wouldn't support supply side economics.
Well I think the first mistake is breaking an argument down to the tired liberal vs. conservative thing. Sure each side has its talking points but actions speak louder than words. The fact remains that neither side is willing to tackle any issue when it comes to Corporate America. All politicians know where their bread is buttered.
The reason the conservative/liberal argument fails is that, to use the tired stereotypes, conservatives are in favor of no regulations, generally pro business, for profit capitalism. How can you preach supply side economics when the goal is to maximize profits while minimizing costs? This is what got us to offshoring tech support and customer service to India and offshoring manufacturing to China. The lack of regulation and laws on companies is what encourages illegal immigration. Stop hiring illegal aliens and put a serious dent in illegal immigration.
But neither side will touch that and in the meantime they leave it up to good Americans from both sides of the aisle to point the finger at each other.
Well I think the first mistake is breaking an argument down to the tired liberal vs. conservative thing. Sure each side has its talking points but actions speak louder than words. The fact remains that neither side is willing to tackle any issue when it comes to Corporate America. All politicians know where their bread is buttered.
The reason the conservative/liberal argument fails is that, to use the tired stereotypes, conservatives are in favor of no regulations, generally pro business, for profit capitalism. How can you preach supply side economics when the goal is to maximize profits while minimizing costs? This is what got us to offshoring tech support and customer service to India and offshoring manufacturing to China. The lack of regulation and laws on companies is what encourages illegal immigration. Stop hiring illegal aliens and put a serious dent in illegal immigration.
But neither side will touch that and in the meantime they leave it up to good Americans from both sides of the aisle to point the finger at each other.
The bolded statement above makes an excellent point. In fact, the "tired liberal vs conservative thing" is better suited to the unleashed, rage-fueled grievances found in the Politics & Other Controversies forum.
Thank you, BoSox 15, for the clarity of your response here in the Great Debates forum.
Why wouldn't liberals support supply side economics?
We are seeing a shift right now. Liberals (or maybe we should say Leftists) support Big Tech and other giant multinational corporations, which they see as a more efficient and flexible surrogate for Big Government.
Policies that effect corporations like Amazon, Apple, and Google may not be supply side tax breaks per se but the current laissez faire laws and policies allow them to act as monopolies which is more lucrative than mere tax breaks.
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