Supply-Side (Trickle-Down) Economics

For the last 30 years or so (since the presidency of Ronald Reagan) the Republicans have put all their economic faith in supply-side economics (more commonly called "trickle-down" economics). This is the belief that deregulation and lower taxes for the rich (and corporations) will result in a thriving economy -- providing more investment growth, productivity growth, overall growth, and job creation.

That is their theory, but in the real world it just hasn't worked out that way. As the charts above (from Think Progress) show, all four of those areas of growth have actually been slower under the supply-side administrations of both Ronald Reagan and George W. Bush than under the more Keynesian (non-supply-side) administration of Bill Clinton.

And the Clinton administration not only out-performed the supply-side administrations, but was more fair overall. The trickle-down economics, while performing worse, has also resulted in a vast gap in wealth and income between the rest and other Americans -- and triggered the most serious recession since the Great Depression. The sad fact is that supply-side economics simply doesn't work very well and is bad for the economy in general.

That's why it's puzzling to me why Willard Mitt Romney (aka Wall Street Willie) still clings to this failed and discredited economic theory. Is it because he doesn't care about anyone but the rich? Or is he just not bright enough (or courageous enough) to abandon it and find something better? Whatever the reason, it has now become very clear that electing Romney would result in a return to the failed policies of the Bush administration (a majority of his aides are even from the Bush administration). We simply can't afford that.