Understanding Supply-Side Economics

What is Supply-Side Economics?

The term "supply-side economics" was coined sometime in the 1970s. The theory, however, has been in use far longer than that.

I imagine that long before money was coined, some sharp trader likely figured out that he could trade three fire stones for two hunting clubs. This not only would get him twice the amount from a person wanting a fire stone, but it likely also enticed traders to seek him out rather than his competition who had not conceived the notion and wanted one hunting club for each fire stone.

Defending Keynes

John Maynard Keynes (1883-1946) was a British economist and philospher who, to me, is the greatest of all twentieth century economists. He is certainly not as obscure as Robert Nozick, who I also have written about, but he is definitely mischaracterized by many people, even those who have studied economics.

Part of this is likely due to him not having a “one size fits all” economic philosophy, but people characterizing him as such. He wrote of his times, not of how things will always work. Regard for him spans the chasm from brilliant to short-sighted depending on who you might ask. If you ask Time magazine, though, they regarded him as one of the 100 most influential people of the twentieth century.