Quote:
Originally Posted by onetime2
Individual investors do not create supply. They do invest and there can be a massive discussion around the money multiplier effect of savings, businesses' need for investors, etc. but the basic concept of supply side economics is that businesses having more cash will mean more investment in factories, upgrades, expansion, etc. These increases mean jobs and income for the rest. Individual investors do not just send their money into the stock market. They invest in bonds, futures, precious metals, etc. The overwhelming impetus of a "supply side" strategy is creating incentives for businesses to invest (lower taxes, fewer costly controls, etc). The individual investor is but a small piece of the supposed puzzle.
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This may be your or some textbook definition of "supply-side economics" but it flies in the face of the standard definition of it. The modern, venacular understanding, as sold by Reagan, is that reducing income taxes for everyone, including individuals, will increase supply. I could post links to examples but I know that you prefer not to get into the "my article says..." contest.