Supply-Side Economics: Jonathan Chait and His Liberal Lens Miss the Point

North Star Writers Group ^ | October 29, 2007 | Dan Calabrese

[Invisigoth]

Jonathan Chait is a man on a mission. Target: Supply-side economics. Problem: He views supply-side theory through a liberal lens, which is why it’s not making sense to him.

Chait, a senior editor at The New Republic, has written a book titled “The Big Con: The True Story of How Washington Got Hoodwinked and Hijacked by Crackpot Economics,” along with various op-ed pieces roasting supply-side theory.

Chait’s argument focuses on the oft-stated belief of supply-siders that tax cuts pay for themselves by spurring economic growth – that taking smaller slices of a bigger pie still yields you more pie than bigger slices of a smaller pie. Mmm. Pie.

Much of the left is hailing Chait as a hero for “exposing the truth” about supply-side, but all Chait has really exposed is his own priority of government revenue, the higher the better, as the optimal objective of tax policy.

[Moonman62]

What difference doe it make when almost no politicians promote supply side economics? Tax cuts are not synonymous with supply side economics. I guess that’s what these leftists want us to believe, though.

[Donald Rumsfeld Fan]

What difference doe it make when almost no politicians promote supply side economics?

Both GW Bush and Fred Thompson have publicly stated that they're "Supply Siders".

[Moonman62]

In that regard, W lied, just as he lied about supporting a strong dollar. I hope Fred is telling the truth, but he’s hired Lawrence Lindsey to be his economic adviser which isn’t a good sign.