A failed Reagan-era crank theory used to cut taxes and services. It promised a boom in productivity and never produced one. Instead, it created an ever-increasing concentration of wealth in the hands of the rich. Featuring the Laffer Curve. Also called voodoo economics and trickle-down economics. Considered a gross failure.
- A graphical assault on supply-side tax cuts [More...]
- "But the fact that the simple empirical record is uniformly hostile to the supply-side story should put the burden of proof squarely on those arguing that supply-side tax cuts will be pro-growth."
- Charlatans, Cranks and Kansas [More...]
- Paul Krugman takes the Kochtopus' ALEC to task for promoting long-discredited Supply-Side Economics policies. "And most of ALEC’s efforts are directed, not surprisingly, at privatization, deregulation, and tax cuts for corporations and the wealthy."
- Economics is too important to leave to the experts [More...]
- "[...] it is entirely possible for people who are not professional economists to have sound judgments on economic issues, based on some knowledge of key economic theories and appreciation of the political and ethical assumptions underlying various theories. Very often, the judgments by ordinary citizens may be better than those by professional economists, being more rooted in reality and less narrowly focused.
- Finally, Something Isn’t the Matter With Kansas [More...]
- "The cuts came. But the growth never did. As the rest of the country was growing at rates of just above 2 percent, Kansas grew at considerably slower rates, finally hitting just 0.2 percent in 2016. Revenues crashed. "
- Kansas’s conservative experiment may have gone worse than people thought [More...]
- "A working paper by economists at Oklahoma State University suggests that cutting taxes actually may have damaged Kansas's economy, resulting in fewer jobs, reduced incomes and a slower pace of growth."
- Math vs. Reaganomics: Why GOP's anti-tax hysteria falls flat [More...]
- Mathematician Jordan Ellenberg points out some fallacies of Cato Institute propaganda, Voodoo Economics, and the Laffer Curve, based on the difference between linearity and nonlinearity.
- Tax Cuts Are Theft: An Amplification [More...]
- Tax cuts steal from the social institutions that have made us a prosperous society.
- The Economic Consequences of Major Tax Cuts for the Rich [More...]
- "We find that major reforms reducing taxes on the rich lead to higher income inequality as measured by the top 1% share of pre-tax national income. The effect remains stable in the medium term. In contrast, such reforms do not have any significant effect on economic growth and unemployment."
- The Middle-Out Moment [More...]
- A symposium to make what “middle-out” economics the operating progressive theory of economic growth. ": That is, we must promote middle-out economics not just as a nice-sounding idea, but as the direct alternative to trickle-down economics. Where conservatives say investing in the top 1 percent drives growth, we say that investing in the broad middle does it."
- There is No Reason to Believe that Tax Cuts are an Elixir for Economic Growth [More...]
- Many conservatives apparently believe that federal tax cuts have borne rich fruit for the country, or, at worst, that the jury is still out. But this seems to be a case of “who are you going to believe – us, or your lying eyes?” At the federal level, there is virtually no evidence that broad-based tax cuts have had a positive effect on growth.
- When econ models potentially mislead, econ profs should say so [More...]
- Models are often based on assumptions that do not hold in the real world. When they are used to support real-world policies, these failings of the models should be highlighted.
[A]ll these economic theories are at least debatable and often highly questionable. Contrary to what professional economists will typically tell you, economics is not a science. All economic theories have underlying political and ethical assumptions, which make it impossible to prove them right or wrong in the way we can with theories in physics or chemistry.
Ha-Joon Chang, "Economics is too important to leave to the experts"