Are the Republicans more correct by emphasizing supply side monetary policy or are the Democrats

more correct emphasizing policymaking more supportive of workers? Do you feel businesses get more
monetary policy support than workers? Why do you believe this is so?

In my opinion, I believe that the Republicans are more correct by emphasizing supply side
monetary policy, and the businesses in the United States get more monetary policy support than the
workers.

America’s middle class was once envied by other countries in the world. After World War II, the
nation’s economy grew greatly which led to an era of shared prosperity and well-paid jobs. However,
nowadays, the American middle class is shrinking, numerically and financially. “In 1970, 62 percent of
Americans lived in a middle-class household, defined as a household earning between two-thirds to two
times the nation’s median income. Americans in that category earned 61 percent of the nation’s income.
By 2015, however, middle-class Americans had dropped to 50 percent of the nation’s population and
their share of the nation’s income had slipped even more, falling to 43 percent” (Patterson 494). After
the 1930s Great Depression, the federal government openly sided with businesses and the wealthy.
Republican Party leaders are more likely to see an economic downturn through the lens of business
firms. Republicans usually resisted spending large amounts of money because government has to borrow
money from other countries, which creates upward pressure on interest rates, including the rates that
business firms have to pay for loans. “Rather than relying on government spending programs to boost
consumer spending, Republican presidents Reagan and Bush turned to large tax cuts for companies and
upper-income taxpayers as a means of stimulating business activity” (481).

The assumption of supply-side theory is that, if businesses and rich individuals have more money
on hand, they will spend more and invest more in production which will boost employment and
consumer spending. Businesses usually get more monetary policy support than workers because they
promote economic interests. “A large number of these programs, including those than provide loans and
research grants, are designed to assist business firms, which are also protected from failure through
measures such as tariffs and favorable tax laws” (489). Labor obtains government assistance through
laws covering areas such as worker safety, minimum wage, and collective bargaining. “Yet America’s
individualistic culture tends to put labor at a disadvantage, keeping it less powerful than business in its
dealings with the government” (489).

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