"This distinction, taught in Economics 101, seldom makes it into the Washington sound-bite wars. A demand-side cut rests on the Keynesian theory that public consumption spurs economic activity. Government puts money in people's hands, as a temporary measure, so that they'll spend it. A supply-side cut sees business investment as the key to growth. Government gives money to businesses and wealthy individuals to invest, ultimately benefiting all Americans. Back in the early 1960s, tax cutting was as contentious as it is today, but it was liberal demand-siders who were calling for the cuts and generating the controversy."
David Greenberg in a 2004 Slate article argues that Republicans are wrong to claim that John Kennedy anticipated conservative tax policy.
Saturday, September 25, 2010
"Like Scripture, It Seems, John F. Kennedy Can Be Quoted for Many Purposes"
Labels:
1960s,
economic history,
Greenberg,
JFK,
political history
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