> Sam wrote: > Years after Reagan was president they Democrats called > him the worst saying we'll suffer for years from > Reaganomics. Eventually they agreed what he did > worked.
Nobody thinks Reaganomics worked, at least nobody credible that's being honest. The core of Reagan's plan was the so-called Laffer Curve (no pun intended). Mr. Laffer postulated that if taxes were lowered federal government tax receipts would actually go up since the economy would explode due to all of the freed up capital that would now be put into businesses. He was right in that something had to be done about tax rates and Mr. Reagan was right to lower them. After the cuts, however, tax receipts didn't rise significantly, but they didn't sink drastically either. Laffer proponents will say that's proof that it sort of worked. Most people who've studied it have concluded that tax receipts didn't drop off drastically because rich people, whose tax rate was 70% +, were no longer incented to keep their money in off shore tax shelters so they repatriated their money which then got taxed at 30% +. If you remember, Mr. Reagan raised taxes in his second term because he had no choice. So even Mr. Reagan would say Reganonmics didn't work how he was told. The deficit hobbled the economy until Mr. Clinton's term where he raised taxes on upper income folks by about 7% in 1993. He used the funds to pay off the deficit which freed up money that was being used to service the debt. That service capital was invested into the country and triggered the largest wealth expansion in global history. One of the key factors in this equation was the Republican Congress helping to hold Mr. Clinton's discretionary spending down to 3.7% per year, less than half the rate of Mr. Bush's current non-defense non-security spending. This successful equation is why, if you're a fiscal conservative, you'll vote for Mr. Kerry and Republicans for Congress. Mr. Bush's loss will discredit big gov't neo-cons and you'll see fiscal responsibility returned to the Republican party. If Mr. Bush wins, however, the money train will continue stronger than ever and the next generation will be the first to have less than its predecessor. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Sams Teach Yourself Regular Expressions in 10 Minutes by Ben Forta http://www.houseoffusion.com/banners/view.cfm?bannerid=40 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:133178 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
