This current economy starting with the spiking gas prices and not yet culminating in raising unemployment and falling stock prices, it the most obvious proof of supply side economics.
We are simply doing what we should do at times of uncertainty, cutting back. Americans all over, including those with means [the rich], are deciding not to buy. While trimming back on subscriptions, eating at home more and re-watching an old movie on TV versus paying for it via cable, the rental store or going to the movies, all make sense for the individual. I am doing all of these and more.
But when we all do it, what impact does it have on the economy? It stalls. The movie theatre runs movies at a loss, then simply trims times and rotates them out more quickly. In the end this means less need for employees at all times. The rental store also needs less people to work each shift. The restaurants have to cut back on staff or close their doors. The largest example is the construction and real estate trades that are being devastated by the locking up the housing market.
All of this is evident and easily proven cause and effect. But try to cut taxes to get more money into people hands and it is deeemed ludicrous. No, we are told “only government can help”.
