Neither Demand-Side, nor Supply-Side
Some people assume, incorrectly, that I am a "supply-side" believer. I am not. I'm neither demand-side (Keynesian) nor supply-side (Chicago School) in my general beliefs about economics. Ah, and in there we find a problem with economics: beliefs are part of the complexity. The Austrian School of economics is more laissez-faire. While I find the supply-side arguments less troubling than traditional Keynesian models, I would rather embrace the free-market as much as possible. More Adam Smith than Friedman, and certainly more Hayek than Laffer. Economist Roger Garrison has said there is a word for politicians embracing Austrian Economics: losers. Keynesian models are demand-based, with the belief that government is the ultimate creator of demand. This is nice and simple to sell to voters, because Keynesian economics offers a solution to downturns: the government will bail us out, somehow. Most voters, not being in the entrepreneurial community or investment class, do re...