Yahoo! News Message Boards Business News: "EXPOSING CONSERVATIVE ECONOMIC POLICIES
by: canadianpatriot2000 02/25/04 12:32 pm
Msg: 2486 of 9306
34 recommendations

Conservative economic theories like supply side economics have put America into so much debt that America is flirting with insolvency. It ignores several realities. Realities like:

- Offshore tax havens
- Unionized labour
- Cheaper foreign labour
- Lax environmental laws in Third World Countries
- The need for corporations to build up coffers for a future economic downturns
- Propensity of corporations to invest saved money in burgeoning markets like China and India

'Trickle down' or 'supply side' economics is the principle that poor people, who must subsist on the table scraps of the rich, are best served by giving the rich bigger meals.

Sorry, but social programs and government regulation of free markets are all necessary components of successful economics. This is all outlined in the Keynesian Macroeconomic Theory. Without these controls you get hyperinflation, Stock Market Crashes, and events like the Great Depression. FDR's 'New Deal' changed all that. The famous economist John Maynard Keynes argued successfully that in times of economic downturn the government should deficit spend to boost the economy, while it should save and build up surpluses during boom times. The free market cannot be left to its own designs, and deregulation is not all it's cracked up to be. In several jurisdiction where power companies have been deregulated, electricity rates have sky rocketed. California and Ontario (a province in Canada) are two prime examples.

However, there is a danger in deficit spending if"