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It's both parties not just one. Your obviously anti GOP claim isn't accurate.
I'm not a republican, I'm just saying. They're ALL at fault.
I think the most important part of that article is the statement about the effects not showing until 25 years later. We're always in this mode of 'now' and don't realize what a politician is getting credit or blame for could be in small or large part due to some else's doing and they just happen to be in the right/wrong place at the right/wrong time.
Do you support the increased spending from the Obama Administration? How do you think the increased debt will be paid off? Are you concerned about the strength of the currency?
I tynhik he thinks that the rich are going to pay for the stimuluis spending and the interest also. What do companies do when their cost goesup is the answewr. They reduce cost;labor and they pass on the other to the consumer by way of increased prices.As of april teh revenues were lower than the governamnt estimated ;so we are even further behind.Even berannke said today that we need to reduce the deficit spending.
Ronnie Raygun cut upper level taxes and increased military spending at the same time. No wonder we went broke.
Government revenues increased from $500 billion in 1980 to $1.1 trillion in 1990 due in large part to the across the board tax cuts (not just "upper level").
Fleet - That is a common myth. Tax revenues expanded because the deficit fed economy expanded. Both would have done better with the tax code of the 1940's and 50's.
Ronnie Raygun cut upper level taxes and increased military spending at the same time. No wonder we went broke.
Except military expenditure does not come from individual taxes, but rather corporate taxes. Most of Reagan's tax cuts that came into existence through the Economic Recovery Tax Act (ERTA) were promptly reversed.
Fleet is correct that actual tax revenue did leap during the Reagan years, as did spending. Tax revenue grew at an average of 28%, while spending increased 33%. Those few percentage points really add up after 8 years, hence the deficits. However, in prior years average tax revenue growth was around 19%, spending at ~20%.
The problem is we will never know if the tax cuts did or did not work in the early 80s, due to the fact that the Fed spiked interest rates to 20% in order to curb inflation and caused a subsequent recession in 1982. This of course was concurrent with the ERTA tax cuts. However, in 1983/1984 we saw the largest growth rates since WWII, and the tax cuts were reversed followed by the economy returning to what most economists consider 'normal' growth levels.
I could go into detail about elastic/inelastic demand and tax rates, but it will probably just be ignored anyways.
Look at who the liberals hold as their "Gold Standard." Roosevelt. Really? The daddy of entitlements? Who else do they hold in high regard? LBJ? Hoover? Yeah...real winner with no real results...not positive ones anyway.
For all Republicans who continue to put Ronald Reagan on an alter, which he most definitely does NOT deserve, please read the following editorial by Paul Krugman: http://www.nytimes.com/2009/06/01/op...EHg04H218ziqLA
Reagan is the one who started both the federal government and American citizens down the road of massive debt levels and fiscal imprudence, and little personal savings...
His financial deregulation removed limits on mortgages, which in turn eventually aided the housing bubble that is now unwinding...
Be open minded - and realize that this person who many in the GOP regard as their GOD was the one who started the ball rolling towards this economic catastrophe that culminated in the Bush administration, and which we are trying desperately to get out of today...
Well said and yeah I just don't get understand why republicans put this guy (Reagan) on a pedestal...He is certainly not worthy of the worship they bestow upon him....Did anyone hear the wacked out comment by Rush saying that the terrorists better hurry up and strike the U.S. before Obama finishes ruining it....I mean talk about embolding our enemies and those who hate us....sheesh....
Fleet - That is a common myth. Tax revenues expanded because the deficit fed economy expanded. Both would have done better with the tax code of the 1940's and 50's.
No, it's not a myth. Another poster here explained I think on this thead.
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