Obama's Theory Of Supply-Side Economics

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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, …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

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