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Preview: Comments on A Bunch of Hot Air: Economic Falacies

Comments on A Bunch of Hot Air: Economic Falacies





Updated: 2014-10-16T18:19:23.703-07:00

 



Sorry I'm a little late to the party, here, but I ...

2007-08-16T15:27:00.000-07:00

Sorry I'm a little late to the party, here, but I remember sitting in Walter Heller's economic class debating this very topic. At the time, it was well accepted by both sides that the first months after the across-the-board tax cuts (remember, there were two cuts) the economy immediately begin to show positive signs and congress posted a surplus. Congress responded with skyrocketing spending that obliterated any benefit from the cuts. While liberals whined that congress and the Prez weren't spending enough, they also complained that the tax cuts weren't effective—kind of a warped catch-22. I always thought it funny that Heller (Kennedy/Johnson chief economic advisor) bragged that the idea was nothing knew since he advised Kennedy to do the same thing during his administration and, likewise, saw success. Although Heller and I had some interesting debates, his was one of the best classes I ever took in college.

Reagan admin reversed the double digit inflation and unemployment rates of the Carter years, and the economy has never seen growth like we had during the Reagan years (like 6% GDP). The fall began with the Bush admin which failed to follow through with the Reagan policies including Bush's famous reneging on his "read my lips" promise to not cave in to Democrat's demands to raise taxes. There were a lot of reasons why the mostly later '90s brought a windfall to tax coffers that have nothing to do with strong economic growth. The Bush years, and everything since, has been fairly "sluggish" as the talking heads at CNBC report.



I really don't have anything to add to your remark...

2007-08-09T09:00:00.000-07:00

I really don't have anything to add to your remarks, just to note that you are spot on.

Tax cut rhetoric and action is our government on its knees for the wealthiest and the lobbyists they support, government "by the rich for the rich."

Those who dig deep enough will see how the Reagan administration had to reverse some of its moves because the deficit spiraled so dramatically.