Note by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
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In Stephan Pastis comic strip Pearls Before Swine (Atlanta Journal-Constitution 6/4/2018) the Rat character proposes giving all the tax cut to the middle class rather than to big corporations. He called it “up yours’ economics”. Here are some other ideas including supply side, demand side (Keynesian) economics (both involve fiscal policy) and monetarist economics (monetary policy). Some of these policies have been called voodoo economics, trickle-down economics, and in some cases socialism. They all appear to have both positive and negative effects. For example, they increase employment but also increase the deficit. Many of the following policies have been used and there is little agreement on whether they were effective from a systems or cost-benefit perspective. More economic analysis and less political spin is needed.
1. Cut the corporate tax rate to encourage corporate spending.
2. Decrease regulation.
3. Print more money and tax corporate savings.
4. Increase spending on the nation’s infrastructure.
5. Forgive federal student loans.
6. Provide more subsidies for research and development.
7. Provide more tax breaks for exports.
8. Provide more tax breaks for foreign firms that invest in the U.S.
9. Subsidize childcare.
10. Allow negative equity homeowners to refinance mortgages at lower rates.
11. Cut unemployment benefits and create job training programs.
12. Extend unemployment benefits.
13. Provide more money to state and local governments.
14. Increase the availability of credit for small businesses.
15. Provide free public college education.
16. Provide Medicare for all.
17. Raise the minimum wage.
18. Reduce interest rates.
19. Legalize online gambling.
20. Provide a parental stipend for working families.