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Aug 17, 2003 Once again, Stensrude has no clue what he is talking about. Tax cuts go mainly to the wealthy? No kidding, we pay most of the income taxes. How are you going to give a tax cut to an 18 year old punk who earns no money? The post WWII economic expansion lasted from 1947 to 1982? What a load of crap. Kennedy had to cut taxes in 1962 to stave off a recession. Nixon had his recession when we pulled out of Viet Nam. Thats why most Republican presidents have a recession, ending a long democrat war ALWAYS causes a recession as thousands of soldiers must be re-settled into the economy. Carter's stupidity gave us a four year recession, although most left wing economists don't realize that when you have 4% numerical grouwth, with 12% inflation, you have 8% negative growth. Reagan's tax cut DID work, as it stopped Carter's recession, cut interest rates in half, cut unemployment in half, and doubled tax revenues in seven years, an amazing 10% real economic growth, causing real economists to dub the Reagan presidency, "the seven fat years". The quadrupling of the debt from 900 billion when Carter left office to 3.6 trillion when Bush I left office was due simply to the interest on the T-bonds issued by Carter. These bonds carried a 16% interest rate, which doubles in 4.5 years. In 9 years, just the existing debt BEFORE Reagan took office became 3.6 trillion, ONLY from accrued interest. Without that absurd interest rate, Reagan actually ran a surplus. Tax cuts DO NOT create deficits, as they DO NOT reduce tax revenue. The FIRST year after Reagans tax cut, the treasury revenue was UP. No matter what the tax rate has been over the past 60 years, the revenue to the treasury has been a staedy 18.5 to 19.5% of GDP, which is the ONLY way to properly measure this statistic. Tax cuts are supposed to make people spend more? No, not really. They are designed to make the "evil rich" invest their money in their businesses. No, Virginia, capitalists, don't invest in tax free bonds. We invest in ourselves. When business buys capital goods, it creates jobs, which creates more products, which are, in turn purchased by the public. If you give tax welfare to the poor, it works in reverse. The poor start a buying spree before merchandise stocks are up. This creates inflationary pressure on prices, as demand is falsely increased while supply remains static. If you hav e anymore questions about how public policy should be handled, go ahead and ask me, I have the answers. ------------ Email John Marker: realnewsjohn@icqmail.com Comment on this column in the forum. Tell a friend about this site! ------------ |
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