George Washington Child Costume

Selling the 'Supply-Side' Myth

19.05.12

That approach, once famously mocked by George H. W. Bush as “voodoo economics,” was supposed to spur businesses to expand production (the “supply side”), thus creating jobs and boosting revenues from all the commercial activity. In 1980, I was working as an Associated Press correspondent covering budget and economic issues on Capitol Hill – and at the time, the “supply-siders” had two key arguments in their favor: first, the economy had stagnated in the 1970s largely due... “I worked with Ronald Reagan to develop supply-side economics in the late ’70s, along with Jack Kemp and Art Laffer and Jude Wanniski and others,” Gingrich declared at a recent town hall event. Gingrich even boasts of his role in pioneering these theories of massive tax cuts favoring the rich, combined with sharp reductions in the role of government. People called it ‘voodoo economics.

Source: Consortium News