If supply-side theories worked, the economy would be booming

Posted in the Minneapolis Forum

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Smarter Liberal

Minneapolis, MN

#1 Nov 30, 2012
happens to be wrong. The premise is that if you make sure businesses* have as much money as possible, they'll hire more workers. One easy way to do that, they claim, is to lower their taxes.

If that were really the case, though, the economy would be in great shape. After all, corporate profits after taxes are at all-time highs (and the same is true even after accounting for inflation.

So why aren't more businesses hiring?

The answer is, because supply-side economics is nonsense. In reality, the economy is driven by consumer demand.

Let's consider a hypothetical scenario. You own a company that manufactures widgets. You can manufacture 1,000 widgets a day, and demand is generally for between 900 and 1,000 a day, which you can sell for a profit of $5 per widget. So you keep up that pace, selling most of your widgets, and storing up the excess inventory for the holidays.
Now, consider two possible alternatives, and think about in which one you're likely to hire more workers.

First, what if the government cut your taxes, so you could make a profit of $6 per widget, but demand remained the same? Would you hire more workers? What would you do with them, without any additional widgets to make?

Second, what if the government raised your taxes, so your profits were reduced to $4 per widget, but demand increased beyond the 1,000 widgets you could make per day. Would you hire more workers, despite your lower profits? If you didn't, you would be forgoing additional revenue from new customers.

The point is, money in the bank doesn't translate into new jobs. Demand for your products does. Our current economy is proof of that. It's time for our policymakers to stop pursuing failed supply-side policies and pass another stimulus bill.

*Today's conservatives also tend to conflate "rich people" with "businesses," which is absolutely absurd. But that's also an entirely different topic, so I'll leave it alone for now.

Since: Nov 09

Saint Paul, MN

#2 Nov 30, 2012
Do you run a business? You are not qualified to opine. You talk in widgets because the only thing you are capable of as a liberal is sophistry. You pretend at intelligence. As a business owner, the more money I have to create more business, the more I have to hire people. How can you be so obtuse? You think business poeple just take the cream. I defy you. As a business owner of 10 years and nearly 20 employees, I still make less than they do to keep it competetive and growing. Jealous idiots like you can't stand truth and will never believe it. I started my busienss 10 years ago to build something for my children. After ten years of building it, you a-holes want to steal my kids' college fund. May you rot.
Smartest Liberal

Minneapolis, MN

#3 Nov 30, 2012
Sapentia wrote:
Do you run a business? You are not qualified to opine. You talk in widgets because the only thing you are capable of as a liberal is sophistry. You pretend at intelligence. As a business owner, the more money I have to create more business, the more I have to hire people. How can you be so obtuse? You think business poeple just take the cream. I defy you. As a business owner of 10 years and nearly 20 employees, I still make less than they do to keep it competetive and growing. Jealous idiots like you can't stand truth and will never believe it. I started my busienss 10 years ago to build something for my children. After ten years of building it, you a-holes want to steal my kids' college fund. May you rot.
Thanks for sharing the truth with the idiot Dems on here. Wishing you the best in your endeavors.
Amused Slew

Seattle, WA

#4 Nov 30, 2012
Yeah, funny thing.... WE ALL GET TO VOTE, only a "boss man/ass hat" would pretend OTHERWISE.... gfy ~!
redeemer

Minneapolis, MN

#5 Dec 1, 2012
Sapentia wrote:
Do you run a business? You are not qualified to opine. You talk in widgets because the only thing you are capable of as a liberal is sophistry. You pretend at intelligence. As a business owner, the more money I have to create more business, the more I have to hire people. How can you be so obtuse? You think business poeple just take the cream. I defy you. As a business owner of 10 years and nearly 20 employees, I still make less than they do to keep it competetive and growing. Jealous idiots like you can't stand truth and will never believe it. I started my busienss 10 years ago to build something for my children. After ten years of building it, you a-holes want to steal my kids' college fund. May you rot.
Your own employees and managers are stealing your kids college fund,and they will have to get a grant or a student loan from our government.

Since: Nov 09

Saint Paul, MN

#6 Dec 2, 2012
Amused Slew wrote:
Yeah, funny thing.... WE ALL GET TO VOTE, only a "boss man/ass hat" would pretend OTHERWISE.... gfy ~!
You've lost it Slew. I started a business to take charge of my destiny. You're too afraid and too lazy to do it, too - so you slander business owners. Hmmm... Who do you go to for a job? There are two choices in adult life. Suffer building a dream, or suffer building someone else's dream. You can't stand the truth, so you hate people that pursue endeavors and vote to steal the dreams of those that pursue them.
Amused Slew

Seattle, WA

#7 Dec 2, 2012
Yeah, you're the only business owner and you can use Alinski rules like the rest of your monikers, right moron ~! LMAOROTFU~! Try harder, learn to prove something, WITHOUT poor guesses and nonsense... LMAOROFU~!
Bob Schmahl

Minneapolis, MN

#8 Dec 2, 2012
The point is, money in the bank doesn't translate into new jobs. Demand for your products does. Our current economy is proof of that. It's time for our policymakers to stop pursuing failed supply-side policies and pass another stimulus bill.

Since: Nov 09

Saint Paul, MN

#9 Dec 2, 2012
How insane. Faith in government is less productive than praying to fish. Try spending money you don't have and see if it generates income for you. How do you believe this stimulous crap? Really? How does theft of wealth create more of it? Stimulous is the most obviously stupid answer. Perpetual motion does not exist nor does perpetual sustainance. I pity you as you steal my children's college funds.

Since: Nov 09

Saint Paul, MN

#10 Dec 2, 2012
Amused Slew wrote:
Yeah, you're the only business owner and you can use Alinski rules like the rest of your monikers, right moron ~! LMAOROTFU~! Try harder, learn to prove something, WITHOUT poor guesses and nonsense... LMAOROFU~!
Slew, I have one moniker only and it's the one I post from. I have lived and learned. You theorize and condemn.

Since: Nov 09

Saint Paul, MN

#11 Dec 2, 2012
Amused Slew wrote:
Yeah, you're the only business owner and you can use Alinski rules like the rest of your monikers, right moron ~! LMAOROTFU~! Try harder, learn to prove something, WITHOUT poor guesses and nonsense... LMAOROFU~!
A simple Google search turns up a plethora of interesing Alinski information, He died in 1972. When he died, the poor were not better off. 40 years later, the poor are not better off. Your idealism is defunct.
jerry

Saint Paul, MN

#12 Dec 2, 2012
Sapentia wrote:
<quoted text>
A simple Google search turns up a plethora of interesing Alinski information, He died in 1972. When he died, the poor were not better off. 40 years later, the poor are not better off. Your idealism is defunct.
This information falls on deaf ears, unfortunately. People like slew and Le Jumbo (and all of his false aliases) aren't interested in facts, in case you haven't noticed. This forum is but a platform for their vacant posturing. Rather than arguing from a base of knowledge, these desperate creatures turn to insults against the very information they haven't a clue about.
Bob Schmahl

Minneapolis, MN

#14 Dec 3, 2012
Bob Schmahl wrote:
None of this BS changes the truth - if supply side economics worked, the economy would be booming right now.


So you are saying we have the iPhone bacause there was a demand for it, therefore it was created? No way. The iPhone is but one expample that sinks your Demand Economy theory.
Amused Slew

Seattle, WA

#15 Dec 3, 2012
Bob Schmahl wrote:
<quoted text>
So you are saying we have the iPhone bacause there was a demand for it, therefore it was created? No way. The iPhone is but one expample that sinks your Demand Economy theory.
Actually, despite your obvious stupidity in spelling, demand created the I-Phone. The demand for a portable phone started it and since the niche saw lots of customers, innovation produced a better product...Does it suck to be a complete moron, because you sure are....

Since: Sep 11

Rogers, MN

#16 Dec 3, 2012
Bob Schmahl wrote:
The point is, money in the bank doesn't translate into new jobs. Demand for your products does. Our current economy is proof of that. It's time for our policymakers to stop pursuing failed supply-side policies and pass another stimulus bill.
Another stimulus bill meaning more corporate welfare funded by the taxpayers, taking money from the taxpayers and giving some of it back to them so they will buy stuff? Do you know what you are saying? The overall effect of the previous stimulus nonsense did nothing but provide funds for the chosen entities, bigger bonuses for their leaders and pretty much nothing else.
Bob Schmahl

Saint Paul, MN

#17 Dec 3, 2012
Oh, and helped bring the biggest recession in history to a close.

Since: Sep 11

Rogers, MN

#18 Dec 3, 2012
For most of us in the real world, the recession is not over and shows no signs of ending soon.
The Real Bob

Minneapolis, MN

#19 Dec 3, 2012
Amused Slew wrote:
<quoted text>Actually, despite your obvious stupidity in spelling, demand created the I-Phone. The demand for a portable phone started it and since the niche saw lots of customers, innovation produced a better product...Does it suck to be a complete moron, because you sure are....
Deflect and divert. No wonder you hid from Niether.
Bob Schmahl

Saint Paul, MN

#20 Dec 3, 2012
For those of us who were unemployed the recession has ended.
Consistent

Grantsburg, WI

#21 Dec 3, 2012
Bob Schmahl wrote:
For those of us who were unemployed the recession has ended.
Set down the Meth Pipe!

Those of you in the Asylums should not have access to normal people.

Eating Lime Jello 3 times a day, and crapping your Depends is not a Job.

Gawd! the pain inside your head must be intense.

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