Economic Rhetoric
The New York Times has an interesting reader’s comment section today on the homepage asking readers their thoughts on Supply Side Economics, its benefits, drawbacks, and merited claims. My contention is that supply side economics does work and is largely responsible for much of the prosperity that America has enjoyed over the last 25 years. I also think that the idea of taxing the rich to pay for all the lofty hopes of spending and fixing social security, medicare and medicaid are sadly misleading. You see, not only will taxing one segment of the people lead to social, political, and not to mention economic turmoil, but you will not even come close to being able to pay for these programs. There is simply not enough revenue to be gained by increasing taxes on the wealthiest 1%.
By the way, please, Hilary, Obama, and even McCain, remember that many of those “individual filers” who are in the highest income bracket are really small businesses, which are responsible for roughly ONE HALF of all job creation in the US over the last two decades. This is the greatness of America, the entrepreneurial spirit which drives people to open their own shops and have their own staff. However, increase taxes, and you will see a drop in job creation and even closing of many small businesses who are already hurting.
Now I submit to you the idea that lowering taxes can produce economic stabilization and prosperity, for all. Not just the wealthy, but ALL Americans. By lowering taxes, I believe, you can lower the base, increase investment and saving (which makes it ultimately possible to privatize social security with personal accounts that will pay far better), increase job creation, and keep many of the best minds and businesses here in the United States while attracting foreign investors and businesses to the US.
Lastly, to the NYT reader who said that “Supply side economics is nothing more than a rationale for greed”, I am sorry you feel that way because you fail to realize how much supply side economics and especially capitalism has given you. Socialism doesn’t work because people are generally rational self-interested decision makers. Read Adam Smith and if you still feel the way you do, then go live in a socialist state, have the same amount of money and property rights as everyone else (i.e. none) and I guarantee you will find yourself getting greedy for a venti Starbucks and the NY Times travel section.
“Greed is good”