Re: Re: Budget follies

[Doug Henwood <dhenwood@xxxxxxxxx>]

Ellen Frank wrote:

> pen-l@xxxxxxxxxxxxxxxxxxx writes:
> > CB: Do supply-siders express an aim to lessen recessions' unemployment
> > etc by their tax cuts for capital, or do they say recession is a
> > necessary, good thing ?
>
> Real supply-siders believe either
>
> (1) that unemployment is mostly voluntary and the
> unemployed should get off their asses and start a
> business or something instead of whining and looking
> for a hand-out;   or
>
> (2) that the unemployed are unemployed because
> well-meaning entreprenuers can't create jobs for
> them thanks to bureaucratic red-tape, high taxes that
> punish success, and  government regulations that force
> businessmen to pay workers more than they're worth.
>
> or some combination of (1) and (2).  Remember that
> back in September, Dick Armey publicly opposed extending
> unemployment and health benefits on the grounds that
> such hand-outs were "not commensurate with
> the American spirit."

And there's

(3) Excessively tight monetary policy, courtesy of central bankers
who believe in the discredited notion of the Phillips Curve, when
they really should set policy by the gold price and other
market-based measures.

If you're by a TV the morning of the next employment report (Feb 1),
tune into CNBC and get an earful of Larry Kudlow.

Doug