The Economics of Supply and Demand

xii, 169 pp. Professor Klein shows how supply side factors enter macroeconomics and how they interact with demand side factors. It is only by constructing a model which brings together the total forces of supply and demand that we can understand, and then devise policies to affect, the economic issues of modern society. Although he eschews as too shallow the current treatment of supply side economics, which concentrates on tax cuts as an incentive, he spotlights the general neglect of supply factors as the cause of the present unproductive obsession with fiscal and monetary policy. He advocates turning our attention to the protection of the environment, the supply of raw materials, and the improvement of human skills.