Alan Reynolds provides an interesting history and definition of supply-side economics. Reynolds attempts to clear up some of the misconceptions surrounding supply-side, such as the belief that supply-siders preach that all tax cuts will raise revenue. Reyonlds, citing Bruce Bartlett, says that supply-siders only claim that reductions in marginal rates will result in increased government revenue and therefore reject “gimmicky tax cuts” which simply allow people to keep more of their own money instead of enriching the government coffers.

As Bartlett says “Today, supply-side economics has become associated with an obsession for cutting taxes under any and all circumstances.” Heaven forbid!

Like all supply-siders, Reynolds never answer the question of why we should make increasing federal revenue, as opposed to maximizing liberty, the goal of federal tax policy. Isn’t a government who designs tax policy at the point to maximize revenue without doing too much damage to the private sector more likely to wage wars, create a police state, and establish new welfare programs? Are the supply-siders really friends of liberty?