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Originally Posted by cthulu23
Are you saying that supply side only applies to businesses? That doesn't jibe with my understanding of it. Supply siders generally want lower income tax rates across the board but feel that tax cuts for the wealthy will encourage investment more so then tax cuts for the lower economic classes. You feed the supply, not demand, side.
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Individual investors do not create supply. They do invest and there can be a massive discussion around the money multiplier effect of savings, businesses' need for investors, etc. but the basic concept of supply side economics is that businesses having more cash will mean more investment in factories, upgrades, expansion, etc. These increases mean jobs and income for the rest. Individual investors do not just send their money into the stock market. They invest in bonds, futures, precious metals, etc. The overwhelming impetus of a "supply side" strategy is creating incentives for businesses to invest (lower taxes, fewer costly controls, etc). The individual investor is but a small piece of the supposed puzzle.