How would a proponent of Supply-Side Economics suggest you end a recession?

Answer 1

The easiest answer to this is to listen to the policies that Newt Gingrich is proposing to implement if he were to win the Presidency. You could also see what Milton Friedman has to say about the issue. There are numerous videos of his lectures on You tube. To put it in real modern terms, you could look at the policies attempted by Ronald Reagan in 81-82, but keep in mind he was working with a Democrat Congress which, agree with or not, help back many of his ideas, as well as George W. Bush's policies with his Tax rates changes in 01 and 03 but again not perfect as the tax rebates he sent out would fall under Demand Side policies.

In the simplest of terms, Supply siders would get out of a recession by reducing all barriers of production to a minimum, avoiding using deficit spending greater than a common +3% or GDP, and assuming that jobs created from said policies would boom the economy. Another example to look at would be the economic policies of Napoleon in France between 1799-1803 and surprisingly enough maybe Lenin with his New Economic Policy right after the Russian Civil War ended in the early 20s following his War Communism.

We can learn a great deal from History. Unfortunately, we are currently employing demand side economics of Keynes and FDR to try and pull us out.