I. The problem, according to the article, is the high unemployment rate in the nation; this is caused primarily by lack of consumer spending after the September 11 attacks. There are two ways to go about solving the problem: the "Reagan Supply-Side approach" and the "Keynesian Demand-Side approach".
             Supply-Side Approach: Cut income taxes, primarily for wealthy households, as well as corporate taxes. Eliminate dividend and estate taxes. Reduce government spending and regulation of business. Promote pro-business legislation.
             This would encourage the wealthy to become wealthier, which means they must become more industrious, and also hopefully invest their money. Investors would be more willing to invest, and corporations would begin to expand and invest in more capital stock. This would cause an increase in business, as well as an increase in jobs for the lower-income group. Increased employment rates would cause an increase in consumer spending, which means more money for everyone, which in turn means more taxes for the government.
             This strategy relies on the "trickle-down" effect to fix the consumer spending and employment rate problems. This means that by helping the rich get richer, the money will eventually (cross your fingers) find its way into the hands of the lower-income groups.
             Demand-Side Approach: Increase the quantity of money (controlled by the Federal Reserve), which causes the rate of interest to drop. When interest rates are low enough (lower than expected rate of return on new investment), investments will increase, which will cause greater expansion of business, an increase in jobs, and thus increased consumer spending. To increase the effectiveness of the strategy, taxes should be raised for the wealthy and government spending on public works should be increased (this would increase employment). This means more money for the lower income group, and increas
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