May 1, 2001

Washington, D.C.-As President George W. Bush makes the case for his tax plan, the Small Business Survival Committee (SBSC) issued a new report today explaining supply-side economics, including the pro-growth basis for broad-based tax relief.

"Understanding Supply-Side Economics: The Principles, the Policies, and the Future" was written by SBSC chief economist Raymond J. Keating.  Keating noted: "President George W. Bush's proposal to reduce taxes has re-ignited the economics debate in our nation. The President's budget makes clear that the roots of the Bush tax cut, at least in part, can be traced to supply-side thinking."

Keating added: "The New York Times recently published an article carrying the title ‘Back in Business: Supply-Side Economists Regain influence Under Bush.'   Indeed, the time is right to review supply-side principles, policies, and history, and dispel mistaken notions, so that we can have an informed debate, and chart a pro-opportunity, pro-growth course for America's economy as we set sail into the 21st century."

The report discusses the basics of supply-side economics; explains supply-side policies; examines the supply-side record; and presents a supply-side economics agenda for the 21st century.  

Keating observed: "The record of supply-side economics has come under considerable assault in recent years, particularly as it relates to policies in the 1980s.  Such attacks have been largely motivated by politics and by those favoring continued government micromanagement of the economy. An honest assessment, though, offers high marks for supply-side economic thinking and policies."

Looking ahead, Keating declared: "The supply-side emphasis on incentives, free markets, economic growth, the entrepreneur, and sound money claims a long, honored history.  If the 21st century turns out to be a supply-side century, man's achievements will only be limited his imagination, not by misguided government actions."

"Understanding Supply-Side Economics: The Principles, the Policies, and the Future" is the latest report in the SBSC's "21st Century Small Business Policy Series."  The complete report is available on SBSC's website at www.sbsc.org.

For more information, please call SBSC at 202-785-0238.  SBSC is a nonpartisan, nonprofit small business advocacy group with more than 70,000 members across the nation.