The Myth Of Supply-side Economics

Since the era of Ronald Reagan, Americans has been held hostage to the myth of the power of supply-side economics. Ronald Reagan promised to cut taxes to spur economic growth. He cut taxes alright, and we had economic growth. We also had a record budget deficit and debt. The economic boom of the Reagan years was a result of the massive borrow and spend policy. Reagan funded the economic growth on the back of future generation by presiding over the greated borrowing ever in peace time.
The deficit hawks did not see anything wrong with it. The same way the Republicans saw borrowing to give tax cuts to the wealthy is exactly the way the current republicans see cutting essential government services to finance tax cuts for the wealthy. The Reagan policy resulted in net increase in spending due to increase in debt, it is called leveraging. Tax cut for the wealthy did not create American jobs, it created demand for the luxury goods made overseas that the affluent have an insatiable taste for. On the other hand, the current push to cut spending and lower taxes for the wealthy will have, at best, zero impact on economic growth and job creation. The most likely effect is an increase in  consumption of foreign luxury goods at the expense of basic domestic goods and services that have been displaced by the cut in government spending. Watch out, we may be cutting our way into another recession for the benefit of the priviledged few.