Supply-Side Economics

In response to Paul Craig Roberts’ column “Supply Side Prescription Was the Cure” (Commentary, Aug. 5):

Taking his arguments in order, “Inflation has stayed relatively low.” But certainly not low enough to counter rapidly declining real wages for all but the wealthiest among us.

“Stocks and bonds soared.” On a tidal wave of speculation and fueled by massive debt that is only now coming home to roost. Remember, it was Reaganomics that freed the S&L;’s to invest in all those “soaring” junk bonds and corporate takeovers. Trouble was, the White House and Congress recklessly committed the American taxpayer to insuring their gluttony.

“Debt isn’t crippling the economy.” It isn’t? During the ‘80s we sold our soul, not to mention our national assets, to the Japanese (and others) to finance that debt. For the foreseeable future, American policy is held hostage to an even greater worry: What would happen if they sold out?

“Net worth is on the rise.” For whom? Corporate chieftains certainly saw their salaries and benefits soar. But ask women, young people, minorities. Today, more than 20% of American children live below the poverty level and nearly 30% of all Latinos--a record high in our history.

Finally, Roberts bemoans that “the percentage of new, high-skilled jobs is growing faster than our educational system can train people to fill them” as proof positive we are on the right track! Whose fault is that? We have just endured a decade, and an Administration, which refused to tackle extraordinary problems in education, decaying infrastructure, homelessness, environment, immigration, health care, drug addiction, to name a few.

BRIAN H. KRAFT

Irvine