You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
GOP economic theory has never worked
- Thread starter RCG Trader
- Start date
Quote from denner:
Interest rates were in the high teens around the time Reagan was elected. Just lowering rates would stimulate growth as the construction industry ground to a halt around 79-80. Contrast that with 5 years of ZIRP and the exhaustion of every type of stimulus known to mankind...and yet we're still at stall speed.
I'm indifferent as to who did what when, there is so much revisionist history already, why screw with it anymore than necessary.
tax increased and decreases are always going to happen in a dynamic system.
The idea that tax decrease can't stimulate the economy to raise more tax revenue is baloney. That is a fact.
The tax vs revenue graph is a curve not a straight line.
Quote from Ricter:
Hmm. So you're saying there's more to the story?
as I stated before.
The tax vs revenue graph is a curve not a straight line.
You can only tax so much before you start eating your revenue creating base. If you are eating your base... backing off on the tax would raise tax revenues.
Quote from jem:
tax increased and decreases are always going to happen in a dynamic system.
The idea that tax decrease can't stimulate the economy to raise more tax revenue is baloney. That is a fact.
The tax vs revenue graph is a curve not a straight line.
Yes, but there is more nuance than that, which was the entire point of my reply. We emerged from the late 1970's and quickly began an enormous credit bubble which coincided with these tax decreases. btw, I'm not trying to stir a right vs left political debate on this issue.
Yes, I of course agree with that theory. Not our present circumstances, however. You need to leave CA, you know that, right? The state has been loved to death.Quote from jem:
as I stated before.
The tax vs revenue graph is a curve not a straight line.
You can only tax so much before you start eating your revenue creating base. If you are eating your base... backing off on the tax would raise tax revenues.
The op is wrong, there are situations where supply-side economics is the right approach.