Today’s Brew 12-12-16

Man on the Margin

☕ Man on the Margin provides this nice write-up offering a brief history of supply-side economics, and he has a few other thoughts. Take a look:

The Supply-Side Revolution, Then and Now


Robert Bartley’s The Seven Fat Years and Brian Domitrovic’s Econoclasts, among others, chronicle supply-side history.  Jude Wanniski’s The Way the World Works explains the supply-side model.  Many others—Steve Forbes, George Gilder, Judy Shelton, Nathan Lewis, Reuven Brenner, John Tamny, Lewis Lehrman, Lawrence Kudlow, Alan Reynolds, Paul Craig Roberts, Wayne Jett—have added their voice to the supply-side library.  Gilder’s Scandal of Money and Lewis’ Gold: The Monetary Polaris are essential reading for understanding today’s economic problems and solution.

The supply-side revolution unleashed two decades of global growth.  This forced other countries to adopt the growth policy mix of stable money and low taxes or be left behind.  The reason we are where we are today is because Reagan was unable to achieve a permanent link of the dollar with gold.  Reagan established the Gold Commission early in his first term to examine a return to a reliable monetary standard based on gold.  Monetarists, who were hostile to the monetary constraints of gold, dominated the Commission.  The final Commission report opposed monetary reform, a return to a gold convertible currency.  Greenspan was moderately successful in maintaining a stable dollar during his term as Fed Chairman.  Bernanke and Yellen have no understanding of gold’s monetary properties.  During their terms the dollar has once again floated untethered into the monetary ether.