Well, you know...if we did not have to borrow money, we would not be in this situation in the first place.
Well, the debt is being issued at all time lows, so I guess it won't be as bad as say 5-7 years ago.
With the exception of the 2 surpluses Clinton had, how exactly is this different from the last 50 years?
This is not true at all. Not even close.
Reagan spent like a drunken sailor. He paid for the economic recovery with debt. He issued more debt in just a few years than in the entire history of our Nation.
Tax cuts only stimulate IF the taxes themselves cause people to do something else besides work. It's called a disincentive.
Seeing that we pretty much have the lowest taxes rates in the industrialized world...I think it's pretty clear that our taxes do not disincentivize people from work.
Here are some facts about Reganomics and his tax cuts:
1.On 8 of the 10 key economic variables examined by a 1996 economic reserch committe, the American economy performed better during the Regan years than it did during the pre- and post Regan years.
2. Real median family income grew by 4,000 during the Regan period, after experiencing no growth in the pre-Regan years; it experienced a loss of over 1,500 in the post Regan era.
3.Interest rates, inflation, and unemployment fell faster under Regan than they did befor or after his presidency.
4.The only economic variable that was worse in the Regan period than in both the pre- and post Regan years was the savings rate, which fell rapidly in the eighties.
5.The productivity rate was higher in the pre- Regan years but much lower in the post Regan years.
Regans tax cuts combined with an emphasis on federal monetary policy,deregulation, and expansion of free trade created a sustained economic expansion creating Americas greatest sustained wave of prosperity ever. Our economy grew by more than 1/3 in size, producing a 15 trillion dollar increase in American wealth. Every income group from the richest to the poorest in this country grew its income from 1981-1989.
The economic principle that business expansion, jobs and wealth follow low tax rates is very widely accepted.
My only problem with his economic plan was the amount of debt it created. As far as I know that was the only major criticism of his policy. However you cannot deny that his tax cuts brought us out of that recession.
