Neoliberalism

Neoliberalism

Milton Friedman
1. monetarism
  1. long run trade off between inflation and unemployment
    1. inflation redistributes wealth, modifies value of lent or borrowed money, market less responsive
  2. increasing money supply will not help unemployment
    1. spending increases
      1. prices increase
        inflation eats up expansion
        more jobs
        lower real wages
    2. monetary growth should be static
    3. monetary policy may overact as expectations lag behind
2. spending based on permanent income
George Stigler
1. regulatory capture
  1. tie between government and corporations
    1. can't effectively regulate
    2. may implement policies beneficial to corporations
  2. better to have no regulation
Arthur Laffer
1. too high of tax rates distorts incentives to work, takes large amount of wage
2. too low of taxes, government doesn't have enough revenue
3. point of optimal taxation, the Laffer curve
Supply Side Economics
1. cut taxes of rich
  1. rich will invest
    1. jobs will be created
      1. nation will increase competitiveness
    2. research and development will increase productivity
      1. marginal value of each worker will increase
        wages will increase
        tax revenue will rise

Resumen del Recurso

	Creado por Megan Clermont hace más de 8 años