Quote:
Originally Posted by finnbow
I guess what bothers me is the GOP's religious devotion to Reaganomics. Any Republican who voices anything but absolute fealty to it is short for this world (until they retire and somehow magically get common sense (e.g., Alan Simpson))
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I think the disconnect of Reaganomics with reality is the misconception that somehow reducing the funds available to the politicians will somehow cause them to reduce spending, and we can see how well that is working out.
In theory, reducing taxes and leaving more money in the hands of consumers and business to spend and invest will grow the economy and create a larger tax base, and therefore expand the public coffers...a smaller slice of a much larger pie. The basics of Reaganomics.
And a small part of the overall economic equation.
Actually, Reaganomics and Keynesian economics have become meaningless terms. Where the problem lies is with the fact that we can no longer raise taxes enough to pay for the spending which we can no longer afford.
Unless we cut spending, there is no way to balance the budget, no matter how high we raise taxes. Other than inflation, which is what we are in the process of doing, and have been doing, for a long time.
Chas