Two New Reports Upend Supply-Side Dogma

Up is down! Black is white! Keynes is Friedman! It’s like we’re living in economic Bizzaro World!

First, there’s this:

Maybe a higher minimum wage isn’t so bad for job growth after all.

The 13 U.S. states that raised their minimum wages at the beginning of this year are adding jobs at a faster pace than those that did not, providing some counter-intuitive fuel to the debate over what impact a higher minimum has on hiring trends.

And now, there’s this:

The big takeaway: There is a clear connection between economic inequality and low-tax, low-cost state business climates (or, more accurately, business climate indexes based on those factors). As they put it: “The same tax and cost related indexes that are associated with higher economic growth are also associated with increases in inequality.”

Omigod, it’s like everything the supply-siders have been telling us for the past 40 years is wrong! A higher minimum wage does not decrease economic growth, and a rising tide does not raise all boats!

Who’da thunk?

Comments

  1. 1

    czechsaaz spews:

    And I was so sure this was going to be the year for Good Space Guy but there’s his candidate statement:

    Don’t push prices higher by raising the minimum wage, instead abolish the job-destroying minimum wage! Wages should be set by Supply and Demand, not by a minimum wage that makes it illegal for slow, disadvantaged people to work. Please, notice the unemployed and resulting crime created by the current minimum wage. Free (including homeless) people should have the right to accept whatever low wages the market will pay them. Low pay is better than no pay. Labor is the only thing some less productive people have to sell, but this bad law makes it illegal for them to work. Crime and welfare increase.

  2. 2

    Puddybud - The One The Only spews:

    Goldy hijacked this…

    adding jobs at a faster pace

    Are those FULL-TIME jobs Goldy? In June the BLS stated quite factually 275,000 part-time jobs were added of the 288,000 reported jobs.

    just axking (Jess Jackson speak)!

  3. 3

    screed spews:

    Who’da thunk? Anyone with critical thinking skills, that’s who. Supply side economic theory was discredited (to the extent it had any credibility to begin with) some time during the Clinton administration when the economy did quite well after taxes were raised on the upper income bracket earners. The problem though is that we’re using the wrong metric to evaluate supply side economics success/failure. It was never intended to actually improve the economic well being for the majority of people. No, its main purpose and utility was and continues to be as a plausible rationale for cutting taxes on the wealthy. That is why it remains to this day, because it has been very successful at providing pundits and pols with talking points on why cutting taxes on the wealthy is good for the country as a whole. That it is all a bunch of hooey doesn’t matter, especially when it is coupled with race-coded language on how cutting taxes is also a way to reduce government fraud and waste so as to keep welfare cheats (wink wink) from stealing your tax money.

  4. 5

    Roger Rabbit spews:

    @3 “Anyone with critical thinking skills, that’s who.”

    Well, that leaves out Puddy, who has four knees that all jerk at the same time.

  5. 7

    Puddybud - The One The Only spews:

    Supply side economic theory was discredited (to the extent it had any credibility to begin with) some time during the Clinton administration when the economy did quite well after taxes were raised on the upper income bracket earners.

    And Clinton lost the Congress. Then they passed tax cuts… DUMMOCRETINS screamed Republicans would be starving school children (LIE). He signed it. http://www.heritage.org/resear.....1990s-boom

    FACTS! Explode IDIOT Wabbit minds who can’t process facts critically or generically!

  6. 9

    Roger Rabbit spews:

    And here’s to departed HA troll “Mark the Redneck,” gone but not forgotten, who claimed that cutting taxes always increases revenue.

  7. 10

    MikeBoyScout spews:

    Supply-side economics and teabagging GOP politics can never fail. They can only be failed.

  8. 11

    Roger Rabbit spews:

    Can anyone explain how supply-side is supposed to work when the economy’s problem is lack of demand?

  9. 14

    Puddybud - The One The Only spews:

    Bill Clinton in 1995 ”Probably there are people in this room still mad at me at that budget because you think I raised your taxes too much. It might surprise you to know that I think I raised them too much, too.” So much for that great tax increase making the economy “hum”!

  10. 15

    Better spews:

    @12. A role of goverment in the economy is to act like a referee in football. Without a referee to enforce rules, it devolves into thugs beating and killing the smaller players then going into the stands and robbing the spectators. It’s not picking winners and losers, but it is making the players play fair so the less strong or the individual has a chance at the American dream.

    Another aspect of Government is to deal with the things that are too big and too powerful for the individual to deal with.

    Back at you Jack, what is YOUR vision for the role of government in the economy?

  11. 16

    tensor spews:

    “Bill Clinton in 1995 ”Probably there are people in this room still mad at me at that budget because you think I raised your taxes too much. It might surprise you to know that I think I raised them too much, too.” So much for that great tax increase making the economy “hum”!”

    Notice he didn’t apologize for raising taxes, just for raising them “too much”? Nope, didn’t think so.

    Also, if you want to tell us all about the privation and economic collapse of the late ’90s, please go right ahead; it would be amongst the most accurate of your writings.

  12. 17

    Better spews:

    Jack, last chance, before this drops off…
    What is YOUR vision for the role of government in the economy?

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