Thursday, April 23, 2009

Trickle-down Economics and Ronald Reagan

An excerpt:

You say that Trickle down "hasn't worked". But of course whether or not an economy "works" depends on what is considered to be success. By comparison to the rest of history and to most of the world today, the US economy is a success. I claim that "supply side economics" HAS worked in the US: in the 1920's and the 60's and the 80's. And from 1800 to WWI. Low (or lower) tax rates have resulted in economic growth and increased tax revenues; while higher rates (in the 1930's, 70's and 90's) have either reduced revenue or lowered the growth of revenue. This was the claim of Arthur Laffer, and the supply side economists. The figures are clear about this, but I keep reading about how the 1980's prove that Reagan was a fool who destroyed America and caused us to be poor today, etc. Read the "Baseball Players Syndrome". And see the Reagan Page under deficit & debt/Facts.

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