Supply-side economics in real time

The American economy is bursting bounds almost previously unknown. From Instapundit where a discussion of the supply-side foundation for this transformation is found.

THOSE JOBS NUMBERS LOOK EVEN BETTER: The Washington Post grudgingly admits one amazing thing about today’s excellent jobs numbers – the black unemployment rate is now closer than it ever has been to the white unemployment rate. As the Post notes, in the past when the numbers got close it was because white unemployment was rising. That’s not the case today. Meanwhile, the New York Times says, “We Ran Out of Words to Describe How Good the Jobs Numbers Are.” It’s shocking what a supply-side cocktail of lower taxes, less regulation, and allowing businesses to get on with their jobs can do.

You are looking at the effects of classical economic policies, one more example of how not just useless but actually harmful modern macroeconomic policies are and how beneficial their removal is. All this is discussed on my Quora post: What is the difference between Keynesian and classical economics? which has just passed 1500 visits.

For a more complete story, let me again suggest you have a look at the third edition of my Free Market Economics. On the back cover you will see the following words written by the man who brought supply-side economics to the world:

‘This book presents the very embodiment of supply-side economics. At its very core is the entrepreneur trying to work out what to do in a world of deep uncertainty in which the future cannot be known. Crucially, the book is entirely un-Keynesian, restoring Say’s Law to the centre of economic theory, with its focus on value-adding production as the source of demand. If you would like to understand how an economy actually works, this is one of the few places I know of where you can find out.’
– Arthur B. Laffer, Laffer Associates, US

There seems to be a deep state in economics as well as in politics, where the economy is run for the benefit of crony capitalists, with governments parcelling out our savings either on their own pet projects or to their friends. This is serfdom and the road to poverty. Letting entrepreneurs make their own decisions on what to produce and how to do it actually seems to work. It’s not just balancing the budget; it is removing as much as possible the unproductive hand of government spending and over-regulation that is the only way to make an economy blossom.

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