Tuesday, July 19, 2005

Supply-Side Shitstorm?

So I've been reading The Economy In The Reagan Years by Anthony Campagna. I know what most of you are probably thinking, and no, this book is very critical of the Reagan administration. The author seems to take a Keynesian approach critiquing Reaganomics, which makes for an interesting read since Reagan's policies revolved around supply-side and monetarist theory. It was very interesting to see that the author almost flat out call suppy-side theory bullshit, especially when it was an economic theory that tried to address a problem that all sides recognized, decreased productivity among American workers during the late 70's - early 80's. Perhaps the major fault I have thus far is the criticism of Reagan's increase of defense spending which led to an even greater deficit. What Campagna does not understand, or purposely omits, is that the increase in defense spending led the Soviets to economic turmoil in their efforts to keep up and eventually led to their collapse. Reagan had been lecturing on this point since the 60's. After I'm done with the books I may go into further detail since the subject is quite interesting and most poeple are very uninformed when it comes to specifics regarding Reaganomics. My next book is going to be There's No Such Thing As A Free Lunch by Milton Friedman.

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