Generational Dynamics World View

[Warren Dew]

(08-02-2019, 12:52 PM)pbrower2a Wrote: If you are talking about Reagan as a model for Greece, then Reagan's supply-side economics did more to cut expectations of an easy life doing easy work among late-wave Boomers and Generation X than to stimulate wealth by facilitating investment.

I see you've been swallowing Eric's leftist propaganda instead of thinking for yourself.

In fact, supply side economics is anything that works with the supply curve.  Typically it operates by reducing effective prices, thus increasing the supply at any given price point, through reductions in taxes.  This principle can operate on capital, sure, but it can also operate on labor, raw materials, and finished goods and services.

In the case of Greece, last time New Democracy was in power, the implemented a tax cut, specifically a cut in the VAT on hotels and restaurants from 23% to 13%, as supply side stimulus for Greece's tourism industry.  This happened in 2013.  The result was an immediate turnaround in the economy from shrinkage to growth:



Of course, that was under a different prime minister.  If the new prime minister does something similar, we'll see further recovery in Greece.