Letter: Supply-side theory all wrong

Wednesday, July 9, 2003 | 9:04 a.m.

Not since the Great Depression have we been in such danger of negative interest on bank deposits as we are at the present time.

After $2 trillion in tax cuts have been distributed to the top 2 percent of taxpayers, purportedly to stimulate the economy (which was getting along fairly well before the cuts), the unemployment rate is higher than it has been for nine years. Soon you will earn more by keeping your dollars under a mattress than by leaving them in the bank.

Isn't it about time somebody in authority in this country finally realized the folly and near criminality of the supply-side theory and the failure to recognize that demand must play a part in any "economic recovery"?

Think what $2 trillion invested in public works programs would have done!

DANIEL OLIVIER

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