also use this information: At one point circa 1978 or 1979, I remember the famous Keynesian economist J. Kenneth Arrow confessing, "We liberal economists are discouraged today by the fact that there doesn't seem to be a solution to the problem of simultaneous inflation and rising unemployment." . . . In a nutshell, in spite of all the controversy and disagreement-former CEA head Walter Heller said Reaganomics would triple interest rates, and Nobel Prize winner James Tobin said it would produce a "stagnate, sputtering economy. . . and not much growth or improvement in unemployment." The Reagan policy mix worked as advertised to slow the growth in the supply of money while increasing the demand for it. As a result, inflation collapsed, interest rates fell and economic growth revived. The great American job machine got underway. It was morning in America, and the prosperity that dawned in the 1980s continues on today Reaganomics succeeded in defeating stagflation and winning lasting prosperity. It was an enormous practical success but it left an unfinished agenda, and it never succeeded in permanently changing the political-economic paradigm in Washington, DC. In short, although many supply-side principles have been adsorbed into conventional wisdom and are now taken for granted, the supply-side paradigm as a coherent school of economic thought was unable to survive Ronald Reagan's passing from the political scene. Source: Jack Kemp, Speech before the Congress, March 9, 2000