Week of February 24, 2025
In the 1980’s, Ronald Reagan mid-wifed “Supply Side Economics”, a theory espoused by Art Laffer. The concept suggested that, unlike Keynesian “demand side” economic policy, government policy to stimulate the production of goods and services via tax reduction/reduced regulation, would unleash said results. It clearly worked as the late 1980s saw increased GDP growth. In some ways, Donald Trump appears to have taken a few pages out of the Reagan playbook. While unsettling to many because of the myriad policy changes emerging all at once, history suggests that the efforts could prove constructive. Our Signals remain unchanged.
Bob Bilkie, CFA
