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Monday, August 23, 2010

Opposite Day- Supply Side Economics

The strongest argument for supply-side economics is it minimizes governmental interference, which is inefficient.  It keeps incentives in tact, which will theoretically do the maximum to encourage productive behavior.  If the potential reward for becoming CEO of a major corporation or for starting your own successful business is $100 million instead of a paltry $60 million, then more people will try to be successful in the business world.  Also, if businesses keep a larger percentage of their profits, there will be more of an incentive to invest (the risk of failure will be about the same, but the reward for "winning" will  be much higher).  With more investment in business and more businesses, you have more jobs, and with more jobs, you have more money for the unwashed masses.

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