A much-deserved triumph in supply-side economics

Ideas on Liberty | February 1, 2000| | Copyright

"After occupying center stage during the 1980s, the supply-side approach to economics disappeared when Ronald Reagan left office."

-PAUL SAMUELSON1

Until Robert Mundell won the Nobel Prize in 1999, supply-side economics had been a school without honor among professional economists. Established textbook writers such as Paul Samuelson (MIT), Greg Mankiw (Harvard), and Alan Blinder (Princeton) frequently condemned the supply-side idea that marginal tax cuts increase labor productivity, or that tax cuts stimulate the economy sufficiently to increase government revenues.

The Laffer Curve-the ...

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