Lest we forget, supply-side economics was controversial because of its claim that worsening “Phillips curve” tradeoffs between inflation and employment were the product of a policy mix that pumped up demand while reducing incentives to supply. By reducing the growth rate of money while improving incentives, the economy could escape from its malaise.
Supply-side economics made good on its promise, and Ronald Reagan delivered both the longest peacetime U.S. expansion and disinflation. This achievement has been buried under a pack of lies told by people whose reputations exceed what their integrity warrants. They succeeded in their goal of pushing the Bush Administration away from successful policies and toward self-destruction. □
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