There seems to be two ways to run a Capitalist economy (an economy that’s based on the private ownership of property). One is by what I call the ‘Demand” side theory (Keynes?) which stresses high taxes and deficits with low-interest rates; the other is the ‘Supply’ side theory (Friedman? Laffer?) that stresses low taxes and deficits and market-based interest rates. What is the best way if the goal is high employment rates (95%+) and low inflation rates (2%-)? What is the most productive way of the two ways to supply the goods and services we need to succeed in life?
This investigation is not an inquiry into Marxist theory (based on the communal ownership of property) except as to how some socialist ideas have been applied to help run Capitalist economies. We can save examinations of Socialist and Communist systems for a future time.
The world is awaiting our answer. If you have insight into this area of query, please jump in!
1 thought on “Demand Side vs. Supply Side”
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