I have always found Jared Bernstein, a former adviser to Vice President Joe Biden, to be one of the more lucid, illuminating voices to rise from the dismal miasma of economics. Bernstein's insightful lucidity probably stems from his lack of professional training in the discipline, much as so much excellent history comes these days from almost anyone but professionally trained historians. Anyhoo, in a NYT op-ed today, Bernstein once again demonstrates his keenness:
[W]e’re into a negative loop where persistently weak demand is chipping away at the labor and capital supply and productivity advances needed to increase our potential growth rate. Supply-side, deregulatory zeal has deprived the economy of investments in infrastructure and other public goods, innovative research and the oversight necessary to prevent the shampoo cycles — bubble, bust, repeat — that are whacking away at our potential growth rates.
Proving the theoretical impoverishment of supply-side economics requires only an intellectual loyalty to empiricism, at which Bernstein excels. But he also brilliantly and unfailingly makes the case for demand-side economics, which is way, way overdue for a dominating comeback.