Quote:
Originally Posted by Samm
Keynes believed that demand would create supply, but Reaganomics started from the opposite idea, namely that supply would create demand. In this way of thinking, the supply side of the economy had to be stimulated in order to create wealth. The best way to do this was to cut the marginal tax rates on personal income.
Reagans supply side economics brought us out of the stagflation that Carter left us in. During the Carter years, the top marginal tax rate on personal income rose to the insane record level of 70%.
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The top marginal individual income tax rate was not at record levels under Carter. The record was set in the '50's. It was over 90% from 1950-1963.
http://www.ntu.org/tax-basics/histor...ividual-1.html
Reagan stoked the economy by cutting taxes and increasing spending (i.e., stimulus spending, as it were). Somehow, when Obama did the same, it was somehow unconscionable to modern-day Reagan acolytes.