Obama: Supply-side Economics a 'Theory' that 'Has Never Worked'

David James
By David James | July 6, 2012 | 12:58 PM EDT

While speaking at a campaign event in Poland, Ohio today, President Obama dismissed supply-side economics as “theory” that “has never worked.”

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Obama said, “Their basic idea is that if we spend trillions of dollars more on tax cuts -- most of the benefits going to some of the wealthiest individuals in the country -- so the average millionaire gets a $250,000 tax break.  Even if we’ve got to gut education to do it, even if we’ve got to cut job training programs to do it, even if we’ve got to increase middle-class taxes to do it. If we cut trillions of dollars in taxes and we eliminate regulations, all kinds of regulations.

“If we eliminate all those regulations, and combine them with the tax cuts, then wealthy investors, companies, will do very well and the benefits will spread to everybody else. Now, you know, that’s the idea.

“That’s their vision. Their basic idea is: ‘If everybody’s just on their own, doing what they do, everything’s gonna’ turn out just fine’. Now, it’s a theory. But I think it’s wrong.

“It’s not a smart theory. I mean, if we hadn’t tried it before, you might say, ‘okay, let’s give that a shot.’ But we just tried it, and it didn’t work. And, you know if you look throughout our history, that kind of top down economics has never worked.”