Supply-Side Economics

[finnbow]

Originally Posted by whell

Deficit spending was actually trending down in the last few years of the Reagan presidency...

Because he raised taxes in 1982, 1984, 1985, 1986 and 1987 after his supply-side "Economic Recovery Act of 1981" blew a massive hole in the federal deficit.

The Economic Recovery Act of 1981, also known as the Reagan tax cuts, was the biggest reduction in U.S. taxes of the past 70 years, possibly even the biggest ever. That much is reasonably well-known.

What is less well-known is that these cuts were then followed by a series of tax increases that, if you add them all together, were almost as big as or even bigger than the 1981 cuts, depending on the measure you use.

https://www.bloomberg.com/opinion/ar...s-of-1982-1993

These 5 years of tax increases by Reagan would not have been necessary if his voodoo economics had done what its advocates said it would do - increase revenue. I understand that you find comfort in the belief that Reagan discovered the secret sauce that allowed him to increase revenue by cutting taxes, but it's complete and utter bullshit (and both his VP and Budget Director knew it). Too bad you're so far in the tank that you're unable to recognize that you've been conned (this seems to be a common thread connecting most of your political beliefs).

Supply-side has never shown itself to be a viable/valid economic theory. Indeed, it's strictly a political message - "You can have it all pain-free because tax cuts will pay for it." A win-win for stupidity, gullibility, cynicism and wishful thinking.