From the editors of Democracy:
We are at an inflection point in the Democratic Party’s history, and in the economic history of the country; similar, perhaps, to the mid-1930s and the late-1970s. In the first period, the country embraced Keynesian, demand-side economics. In the second, during a time of pummeling inflation and wage stagnation, the country turned away from Keynes and toward Milton Friedman and supply-side economics.
To us, on the merits, the two systems aren’t close. Keynesian principles helped drive the greatest era of expansion, prosperity, and equality the United States has ever known. Supply-side economics has been good for the top 10 or 15 percent, great for the top 1 percent, but rather bad for everyone else. Yet, because it’s done so well for the people who have money, finance political campaigns, and run things, and because the Democratic Party never quite made the case for an alternate theory of growth (despite this journal’s frequent efforts), supply-side has hung around well past its sell-by date.
That date may finally have come. There are numerous signs that the American people are beginning to question the supply-side assumptions that dominated our economic debates for four decades. Are the signs real?