Reagan's supply-side economics get a Biden update

Treasury Secretary Janet Yellen took pains to distinguish Bidenomics from Reaganomics. Maybe don't draw that line too bright.

Ronald Reagan and President Biden.
(Image credit: Illustrated | Getty Images, iStock)

The last time U.S. inflation was raging, presidential candidate Ronald Reagan promised that cutting income taxes and business regulation would stabilize the volatile American economy, then get it growing like gangbusters. Voters believed the GOP nominee enough that they gave him a landslide victory over President Jimmy Carter in 1980. Now, with prices soaring again, it seems President Biden is promising much the same thing — though he claims his version of "supply-side economics" is different from Reagan's.

In a speech last Friday to the World Economic Forum, Treasury Secretary Janet Yellen said the Biden administration is aiming to create a more productive economy by focusing on issues like the supply of workers and the quality of our infrastructure, an approach she called "modern supply-side economics." As Yellen went on to explain, "Our new approach is far more promising than the old supply-side economics, which I see as having been a failed strategy for increasing growth."

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