One of my favorite conversations is when one of my conservative friends says, "what we need to do is cut taxes." To which I respond, "how will you pay for them?" The answer is always "through growth."
As George H.W. Bush so correctly called out Ronald Reagan for "voodoo economics".
Paul Krugman destroys Supply-Side economics in this great article titled Zombies of Voodoo Economics in the New York Times.
Some of my favorite points Dr. Krugman brings out are:
"Back in 1980 George H. W. Bush famously described supply-side economics — the claim that cutting taxes on rich people will conjure up an economic miracle, so much so that revenues will actually rise — as “voodoo economic policy.” Yet it soon became the official doctrine of the Republican Party, and still is. That shows an impressive level of commitment. But what makes this commitment even more impressive is that it’s a doctrine that has been tested again and again — and has failed every time."
Below are key points in Krugman's article: