Skip to main content

Posts

Showing posts from September, 2011

Supply side vs Demand side economics

An interesting thought popped into my head while shopping for a new tire stem valve on the Internet. (I found a very nice set of 83 degree valve stems for my cb750  https://www.jpcycles.com/product/zz21730/k-l-supply-co-right-angle-valve-stem?v=2 ) In browsing the vast selection of tire stem valves, I thought about the government folks talking about providing tax breaks to companies so they could generate jobs and stimulate the economy. This is considered supply side economics and might also be known as "trickle down economics" in another era. The basic idea is you enable a company to have the money to buy, build, and hire... eventually stimulating the economy. All the politicians preaching this surely must know something I don't, but I can't help wondering why a store or company would keep manufacturing if no one is buying. These days, the more likely scenario is the company manufactures in China, sells their goods here at a hefty profit, pocket the tax breaks