Nathan Rowley, Chapter 4, Question 4

I found chapter four to be particularly illuminating on the subject of economic debate among average people. The points Charles Wheelan makes about supply-side economics are especially important to understanding just how uninformed most economic debate in the media is. Supply-side economics is the idea that cutting taxes can, at certain levels, actually increase government revenue due to increased productivity and investment in the economy. The key is the "certain levels" part. If the tax rate is low to begin with, as it is in the U.S. compared to other developed countries, the economy won't increase in productivity that much, and the government thus will not make more money. Unfortunately, the misconception that all tax cuts will increase government revenue is widespread among the American population, who seemingly would like any excuse to cut taxes. It is myths like the supply-side misconception that create sharp divides in the economic thinking of Americans. If economics were taught more like a science (and it is a science), i.e. taught to contain factual information that cannot be disputed, perhaps there would be fewer divisions in our society.