supply side myth dissed
Seeing the Forest has a mini-rant about the myth of supply-side/trickle-down/whatever economics:
Republicans are holding fast to the idea that getting money into the hands of businesses and the rich "creates jobs."
I ran a company for 13 years. I know a little bit about how it works. I employed exactly as many people as we needed. I did not employ extra people because I perhaps had more money in the bank account than usual. If times were slow and someone handed me a sackful of money I'd say, "THANKS!" and pocket the money. The only thing that would get me hiring more people was customers with money coming in the door. Period. And if I didn't have extra money around I would find it.
Let me repeat that. Customers with money coming in the door [emphasis in the original]. That is what gets companies to hire. They hire just enough employees to handle the extra customers. Period. And when there are customers with money coming in the door companies will find the money to hire them, don't you worry about that.
Now, I do not endorse his call to "Raise [taxes on the rich] till they squeal and then raise them some more," but given that:
I support economic policies that benefit the consumer. I certainly don't think that the President caused the recession, but the causes of the economic doldrums are less important than what's being done--or not done--to remedy the situation. Voters are concerned about the economy, and they're likely to vote based on their perceptions of which party addresses those concerns. I think the Democrats have doen a miserable job of campaigning on economic issues, though, so we'll just have to see how it shakes out.
Update: P.L.A. weighs in on the state of the economy