Nick Hanauer explains supply and demand about as clearly as anyone ever has. He rightly attributes the most powerful force in the business cycle as consumer demand, not lowered taxes.
For real-life examples you’ll only need to look at Europe during the 2011-2012 austerity crisis to see this truth. As a result of austerity measures, average Europeans have seen their wages drop and the buying power it represents disappear along with it.
Not surprisingly, businesses are finding fewer and fewer customers capable of making a purchase. The result: more business failures, which leads to fewer jobs, less circulating buying power, more business failures, etc.
Clearly, money in the pockets of ordinary citizens is what is needed.
I’d say that is a good argument to rename the concept of “Supply & Demand” to the more appropriate “Demand & Supply” since the “demand” portion of the equation is the more necessary element.
It’s time to stop this “no taxes on job creators” nonsense and time to shift power back to the commons where it should have been in the first place.