[Nanodik]

If that is the sum of "supply-side" economics, then one could go home right after their 10th grade lesson on supply and demand. As such, I don't see supply-side as being a true school of thought, it is simply affirming the laws of supply and demand. I will take issue with the good Dr. Friedman in that low taxes restrain govt spending. In my time, I have seen little evidence that deficits cause restraint on politicians. When I was in school, Dr. Friedman was very much a hero, and the particular school I attended was one that heavily favored monetarism and the Rational-Expectations model, so I have always thought of Friedman as being a monetarist.

[jwalsh07]

Monetarism sprung forth from Friedman's 1956 restatement of the quantity theory of money. I would think he knows a tad more about it than you and I. Me for sure since I wera a blue collar.