Demand-side economics is generally known as Keynesianism, named after the English economist John Maynard Keynes. He believed that governments should force interest rates down by printing money and lending it from the central bank at a discount. This would put more money in consumers\' hands and encourage them to spend and consume more, thus creating an incentive for investment. This helped to solve some of the problems, but in the long run it is extremely inflationary, because with the increase of the money supply it becomes devalued. Keynesianism also calls for the government to spend more to try to help the economy grow. Keynesianism was a short-term solution to the problem and could only do so much for the economy before inflation c

Throughout this period monetary policy, implemented by the independent Federal Reserve Board, commonly known as the Fed, was used to try to fine tune the short term economic situation by manipulating the interest rate, and the money supply, through it’s control over the banking system. With the Keynesian system, the Fed would want to increase the money supply by lowering interest rates and reserve requirements to increase the buying power of the people and increasing demand. The problem with this is that it causes inflation. It was not seen in the seventies that an excess of money caused inflation, because it was blamed on the oil crisis of that time period. With the success of the Reagan administration, it was seen that monetary policy must only be used to maintain the value of our currency and not as another instrument to fine-tune the economy.

The major problem with the policy at this time was that the congress was still led by demand-side liberals. They said that these tax-cuts would produce a budget surplus and instead of using this surplus to offset the revenue loss from taxes, they just increased their spending, which caused the national debt to increase from one to four trillion dollars from 1981 to 1986. Another problem with this supply side ideology was that it was seen as giving the rich more of an advantage, because they were getting more of a tax break than less wealthy peoples. However this was the whole point of the trickle down idea. If you can increase the benefits to the people at the top then those benefits should trickle down to the lower classes, and stimulate economic growth throughout the economy.

failed trickle down economics. He proposed the use of government spending in areas that were hoped to stimulate economic growth. He increased taxes and got the economy out of the recession. To this point the economy is doing much better than it was in recent history, but the economic growth is still not nearly as high percentage-wise as it has been. The upswing in the economy has been attributed to the increase in high-tech industries, and the continued success of the stock market, and the increasing propensity for Americans to invest their money in the market.

Another factor that has helped the economy in the recent past is the increased in international trade, and international trade regulations such as the General Agreement on Tariffs and Trade (GATT). With the economic idea of gains from trade, a nation should choose to import products that other nations can produce more efficiently, and export those things that they can produce more efficiently. After World War II, the United States had the most powerful economy in the world, and they looked to incre

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