- Aerial Tollhouse
- Feb 17, 2011
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The reason supply side economics became popular was because the 70s saw high unemployment coupled with high inflation, which was something that keynsian policies didn't have an answer for. Reagan became president, deregulated and cut taxes, and the economy improved. This completely ignores the fact that paul volcker (a democrat who hates the financial sector and who reagan fired) spent years battling inflation and ignoring heavy pressure from special interests or the collapse of commodity prices, both of which probably did more than Reagan's policies. Also, some posters in this thread seem to be confusing Chicago school and austrian economics. Chicago school is what Milton Friedman and most of Reagan's advisors were, they're the most conservative part of mainstream economics, heavily suspicious of government but mostly use similar methodology to other economists. Austrians are outside of the mainstream, and most of them completely disavow math and experimentation, instead prefering to derive their conclusions by arguing from "first principles". It's confusing because both groups have similar policy recommendations, though austrians are usually more extreme.
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Oct 2, 2015 16:39
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Oct 2, 2015 16:39
