Obama's Theory Of Supply-Side Economics

There has been a conflict between left wing ideologies and right wing ideologies as to how economic systems should be operated. In source one, Ronald Reagan states that “government does not solve problems; it subsidizes them.” This quote indicates the idea that even though government assists in the economy by providing financial assistance to other companies, it is incapable of fully solving all of the economic problems that a country encounters. Through this quote, it is apparent that Reagan is a supporter of supply side economics in which he favors lower taxation towards the wealthier class and regular consumers. By lowering taxes towards the wealthier, business class, foreign investors will feel more confident in investing in these businesses, in hopes of obtaining a profit. Furthermore, by lowering income taxes towards consumers, the average person’s annual income will increase and consequently, they will be able to purchase and support more goods and services. Naturally, this will increase demand and production among companies. Reagan will also advocate the belief that through supply-side economics, the money will be able to trickle down from the wealthier class to the lower class due to the expansion of numerous businesses, lowering the unemployment rate in the country. Supporters of this policy include Thatcher who actively advocates for privatization and the decentralization of a government. By privatizing businesses, this encourages an individual’s incentive to work harder in the work force, competition, and an individual’s pursuit of their self-interest. In addition, Reagan would be against left-wing socialist supporters, such as Marx, Owen, and Engel, who support government intervention, economic equality, and public property. He believes that these policies will not be able to resolve economic issues in an economy as it will hinder an individual’s incentive to work harder through the establishment of an increasing number of social programs. In the second source, it is evident that there is a dispute between a consumer and a business person. Both these individuals are of an equal status as demonstrated by the equal levels of the swings and their ability to freely communicate with each other without the fear of condemnation by authority. Through this cartoon, an economic recession and standstill is occurring as the consumer is “waiting for job growth before [he] begins buying” while the businessman is “waiting for customers before [he] begins creating jobs.” Parker is criticizing the policies of capitalism as he believes that economic cooperation, public property, and economic equality is essential in order to maintain a stable society. The reason the swings are unable to swing is due to the lack of “push” or government assistance from the economy. It is apparent that Parker will advocate for increased government spending, decreased taxation, and …show more content…
As a modern liberalist, Obama would believe that during times of economic downturns, there should be a certain degree of government intervention in the economy in order to provide public social programs to the working class. He believes that the wealth generated at the top of the economy, such as the business, wealthier class, will be unable to trickle down to the lower class due to the wealthier class’ increasing desire to earn more profits for themselves. Furthermore, Obama criticizes the negative effects that supply side economics will have on the people. These may include a drastic increase in competition, the pursuit of self-interest, and a greater wealth disparity between the rich and the poor. This wealth discrepancy will occur as a result of lower rates of business expansion, decreased unemployment and consequently, lower demand. Supporters of this quote will include left-wing socialists and other modern liberalists as they believe that in order to achieve economic equality, government intervention and public property should be advocated to a certain extent in order to decrease the wealth disparity between the rich and the poor. They will also support economic cooperation and higher rates of taxation towards the wealthier class. Opponents against the quote include conservatives and capitalists as these individuals believe that lower taxation should be encouraged among the wealthy in order to generate more profit. By lowering the taxes among the upper class, there will be more investors in these businesses, increasing the expansion of businesses, while lowering unemployment rate. Furthermore, these individuals will also advocate for competition and self-interest as they believe that these policies will naturally contribute to the economic wellbeing of everyone in