Democracy Murdered By Protest

[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%.

[bobabode]

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%.

Stagflation was Jimmy Carter's fault? Hmmm, here I thought it was an inherited condition from the Nixonian era.

[finnbow]

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%.

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.

[Dondilion]

Originally Posted by finnbow

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.

Conceded, however the main thrust of the argument that it was unreasonably
high.

[Samm]

Originally Posted by finnbow

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.

I think you are confusing "nominal" and "marginal" tax rates.
http://taxfoundation.org/article/us-...usted-brackets

[Dondilion]

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%.

Samm, could you defend the Jimmy Carter stagflation claim...please expand.

[Samm]

Originally Posted by Dondilion

Samm, could you defend the Jimmy Carter stagflation claim...please expand.

When the government tries to deal with a stagnate business economy and unemployment with inflation and more government spending by forcing people into spending now thinking they will never see a current price again they produce a continuous increase in interest rates. When interest rates climb they also climb on the interest paid on Treasury bonds (debt)
Can you imagine having to pay a 16% interest rate on the 17 trillion we have now? We would have no money left for anything but interest. One good thing that might come out of it is that we wouldn't be able to continue mettling in every countries business across the globe though. These politicians are like the fat kid in Willy Wanka that wouldn't quit eating the candy till he was forced to.

Google "Carter stagflation" Im sure there are much better explanations for what was happening then the one I have given you.

[piece-itpete]

I thought tax cuts were the devil?

Pete