CAUSE AND EFFECT
This explanation also raises a serious problem with dates.
If it was not until 1984 that enough tax dollars could be liberated for
private industry to invest and create the productivity required for increased
tax collections, then supply-siders have a problem explaining why the economic
recovery began in the November of 1982. Psychological benefits of future
tax cuts, perhaps?
Keynesians do not have this problem -- the Fed cut interest rates just
a few months before the economy took off.
Return to Overview