Once again, into the fire. Laffer's stupidity in spades. The fundamental argument for Supply Side Econ is that supply creates its own demand (orig. to Say). Now, anyone who's observed reality for even just a little while can see that supply, if anything, lags demand. Big Bidnezz doesn't start making more supply until after it's obvious that they're leaving revenue/profit on the table due to output shortfall. Then, and only then, does the Big Bidnezzman make more widgets. And a Damn Gummint Subsidy would be nice, too.
Which brings us to today's reporting that steel, for some reason unknown to the Right Wingnut Supply Siders, just can't seem to create yet more demand.
Of course it can't. Steel is an intermediate good (deep in the Leontief matrix), unlike a Barbie which is a consumer good. So, Big Bidnezz only buys as much steel as it needs to make all the Barbies it can sell. Not too much steel in a Barbie, but you get the point.
Amusingly, none of the interviewed Bidnezzmen brought out the age-old plaint of "ruinous competition" when free markets (co-called) lead to actual competition for product. Boohoo.
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