Tech_Esq
Sic Semper Tyrannis!
Kitten, I must not have said what I was trying to say very well if you came away with that idea. My focus is not really where supply meets demand. In other words, I'm assuming that that if you are forming a business, it's because you can supply some good or service that people want to one degree or another. (the degree = profit or loss).
My argument is more concerning supply-side econ in creating the environment where business creation and capital formation are likely. That was Reaganomics and the antithesis of what Obama is advocating/doing now. Supply-siders reduce taxes on the people with capital so they have extra money to put at risk and then are more likely to do it either directly (forming a business) or indirectly (investing in others who are forming businesses). Also, reducing government regulations that inhibit the formation and growth of businesses and reducing the cost of money (interest rates and inflation).
Does this make every person with money run out and create a business? Nope. But more than the other way. If you tax the hell out of the people with money, how many are going to be able to run right out and start a business? If people can't start businesses, then you do not grow the economic pie. Instead you just have to reslice the pie you have. The pie might shrink, but seldom will it grow. You just have more people competing for fewer resources.
My argument is more concerning supply-side econ in creating the environment where business creation and capital formation are likely. That was Reaganomics and the antithesis of what Obama is advocating/doing now. Supply-siders reduce taxes on the people with capital so they have extra money to put at risk and then are more likely to do it either directly (forming a business) or indirectly (investing in others who are forming businesses). Also, reducing government regulations that inhibit the formation and growth of businesses and reducing the cost of money (interest rates and inflation).
Does this make every person with money run out and create a business? Nope. But more than the other way. If you tax the hell out of the people with money, how many are going to be able to run right out and start a business? If people can't start businesses, then you do not grow the economic pie. Instead you just have to reslice the pie you have. The pie might shrink, but seldom will it grow. You just have more people competing for fewer resources.