History shows that the Democrats are much better at managing the economy than the Republicans. Not only does the economy grow faster under Democrats, all sectors of society benefit.
The Republicans grow the economy more slowly, but in such a way that it benefits the rich much more than others.
So when the rich support the republicans, either they are being stupid, or they prefer _relative_ wealth (compared to the rest of the country) to _absolute_ wealth. That is, they donate to the party that deliberately increases income inequality at the cost of overall growth.
That is what Reagonomics, "supply side" economics, and Bush policies were all about.
(There are supply side steps a government can take to increase growth. They include:
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did not matter. Reagonomics was just an excuse for cutting taxes for the rich and eliminating regulations they didn't like.
Even George Bush (later president Bush) called it "voodoo economics"
http://news.bbc.co.uk/2/hi/americas/270292.stm
History shows that the Democrats are much better at managing the economy than the Republicans. Not only does the economy grow faster under Democrats, all sectors of society benefit.
http://rodrik.typepad.com/dani_rodriks_weblog/2008...
The Republicans grow the economy more slowly, but in such a way that it benefits the rich much more than others.
So when the rich support the republicans, either they are being stupid, or they prefer _relative_ wealth (compared to the rest of the country) to _absolute_ wealth. That is, they donate to the party that deliberately increases income inequality at the cost of overall growth.
That is what Reagonomics, "supply side" economics, and Bush policies were all about.
(There are supply side steps a government can take to increase growth. They include:
- investing in human capital (education, etc.)
http://yglesias.thinkprogress.org/2011/04/americas...
http://phsa.theabramgroup.com/UserFiles/File/child...
http://dsp-psd.pwgsc.gc.ca/collection_2009/fin/F21...
- investing in infrastructure
http://innovationandgrowth.wordpress.com/2010/12/1...
http://www.infrastructurereportcard.org/
- raising the marginal tax rate for the rich
http://www.angrybearblog.com/2011/01/tax-rate-that...
http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25....
But these are not the sort of policies Republicans and so-called "supply-siders" support.)