Demand side economics debunked

Examiner ^ | 24 Aug 11 | Dan Poole

[Yardstick]

If supply side worked, garbage and criminals would be in great demand and would be considered valuable.

Oh wow, I'll bet the supply siders have never thought of this angle before. Their theory is clearly doomed.

[xzins]

The Heritage Foundation paper linked to early in this article also says the Keynesian theory is based on demand.

[Toddsterpatriot]

Demand theory states that if something is being demanded, a supplier will come forward and a mutual price will be agreed on. Supply side econ states that if you produce enough of something, it will eventually be demanded.

That's a unique definition, did you make it up yourself?

[csmusaret]

Demand side economics could work if the government were spending a surplus, but when it has to borrow in order to spend, it is destined to fail. Government borrowing sucks investment capital out of the economy in order to pour stimulus money into the economy. This is just as effective as dipping water out of the deep end of a swimming pool and pouring it into the shallow end in order to raise the overall level of water in the pool.

[DB]

If they had a surplus then they were taking too much out of the private sector and simply should reduce taxes. That would do more than anything else they could do.

[Bigun]

If they had a surplus then they were taking too much out of the private sector and simply should reduce taxes. That would do more than anything else they could do.

Of course it would! But they don't get to do their social engineering that way!