Since when was Reagan's' economic program significantly different?
do you even know the difference between the supply side and demand side?
Oh, I would love to read your explanation of how this works.
Please, "enlighten" us.
your probably wont even be able to comprehend either but ill humor you
Supply Side Economics / Reaganomics / Trickle Down Economics / Voodoo Economics
Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates, and by allowing greater flexibility by reducing regulation. Typical policy recommendations of supply-side economics are lower marginal tax rates and less regulation.
Hence you put more money into the supply side, ie the business owners and the banks in hope the the money will trickle down to the workers and middle class. But this is predicated on the idea that those in control of the money will not hold onto that money for themselves. As is the case today.
"For example, non-financial S&P 500 companies have $837 billion in cash on their balance sheets. ThatÂ’s a record and is up 26% from a year ago. (My colleague Louis Basenese recently quoted a figure from MoodyÂ’s, which claims non-financial companies as a whole are sitting on $1.84 trillion in cash.)"
Corporate Cash
This theory of though is what the GOP chants all the time. Give more money to the top 2% and it will trickle down to the masses.
In the United States at the end of 2001, 10% of the population owned 71% of the wealth and the top 1% owned 38%. On the other hand, the bottom 40% owned less than 1% of the nation's wealth. According to this 2006 study by the Federal Reserve System, from 1989 to 2004, the distribution in the United States had been changing with indications there was a greater concentration of wealth held by the top 10% and top 1% of the population. (
http://www.iariw.org/abstracts/2006/daviesa.pdf)
Demand Side Economics / Keynesian Economics
Demand Side Economics is a macroeconomic theory based on the ideas of 20th century British economist John Maynard Keynes. Keynesian economics argues
that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle. Keynesian economics advocates a mixed economy—predominantly private sector, but with a large role of government and public sector.
Hence you let the free market do its thing. But Keynesian economics does not rely solely on the free market and private enterprise. It realizes that the private sector is not always the most efficient mechanism for business to prosper, thus a well regulated industrialized society can flourish just a much as a pure free market. This can lead to a balanced society, not a "nanny-state" as many right wingers prefer to call it. Keynesian economics take into account the greed of man, and seeks to limit that. Just as the free market brought about the financial collapse of 2007 and the great depression. Well placed regulations as well as actions taken by the Fed on fiscal policy can help stabilize the economy in difficult times. The government when required can pump money back into the economy through the middle and lower classes to boost consumer spending and consumer confidence.
Now neither of these policies is perfect. Supply side does nothing to address the problem of those with the money, not using that money to hire or expand business. while demand side does nothing to address investor confidence in wanting to expand.
But we all know that supply side economics has be utterly debunked by many reputable sources, and has actually been seen to be a major cause of the wealth shift in this nation. Demand side economics has never really had a change to flourish, except in small incidences when major catastrophes have surfaced. Which funny enough, is when demand side economics have to kick in, to help the private sector.