Both parties’ pet economic theories are kaput

Source: Washington Post
by Megan McArdle

“Unfortunately, a lot of Democrats, including our president, are stuck in the economic mind-set of days past, when there was always economic slack that could theoretically be stimulated away, so that deficit spending of any amount seemed to be all upside. They have yet to adjust to the new reality of an economy where the problems are all on the supply side. In this respect, they are coming to resemble mirror images of the Republicans who got trapped in Reaganite amber, never able to move beyond the tax-cut-and-deregulation agenda that had proved so popular in the 1980s.” (09/15/22)