I was being sort of facetious initially, but I do think there is an
issue here. The supply-siders argue that investment will be
high as long as government doesn't spook businesses with
too much interference in the free-market. Now I understand
the limitations of this and the critique of Say's Law and all that,
BUT, don't you think there's some truth to this idea? Didn't
Keynes himself say something to the effect that business
confidence depended on the maintainence of a highly conservative
political environment?
Ellen
[EMAIL PROTECTED] writes:
>I wrote:
>> >>It seems to me that no matter what the rationale -- or
>rationalization
>> -- of Bush2's proposed tax cut, it is Keynesian in practice (because
>> Keynesian theory makes much more sense than supply-side theory does),
>> just as Reagan's tax cut was supply-side in theory but was Keynesian in
>> practice.<<
>
>Ellen writes:
>>Yeah, but Bush and his team would say that the only reason Keynesian
>>policies worked was because they effected the long-run supply curve.
>
>they would be wrong about that explanation. But they can be right (that
>tax
>cuts stimulate the economy) for the wrong reason.
>
>Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine
>
