McCain's misguided role model on deficit reduction
By Steve Benen Friday Apr 11, 2008 2:45pm
Just a couple of months ago, John McCain acknowledged, “The issue of economics is not something I’ve understood as well as I should.” For some reason, he’s been trying to prove this point ever since.
Yesterday, for example, McCain made a campaign stop at an investment firm in Westport, Conn., where a voter asked how McCain plans to balance the federal budget. (McCain has vowed, repeatedly, to eliminate the deficit by the end of his first term in office.)
“Basically, which is it?” the man asked Mr. McCain. “Straight talk: Do you want to raise taxes, cut entitlement spending, cut defense spending, or have a deficit?”
Mr. McCain did not explain how he plans to balance the budget, but spoke generally about hoping to stimulate the economy — and cited President Reagan.
“I don’t believe in a static economy,” Mr. McCain said. “I believe that when there’s stimulus for growth, when there’s opportunity, when people keep more of their money — and the government is the least efficient way to spend your money — that economies improve.”
“When Ronald Reagan came to office,” he said, noting that few in the audience were old enough to remember, “we had 10 percent unemployment, 20 percent interest rates, and 10 percent inflation, if I’ve got those numbers right. That was when Ronald Reagan came to office in 1980. And so what did we do? We didn’t raise taxes, and we didn’t cut entitlements. What we did was we cut taxes and we put in governmental reductions in regulations, stimulus to the economy….”
There’s so much wrong with this, it’s hard to know where to start.
First, citing Reagan as a model for deficit reduction is remarkably foolish. The deficit tripled under Reagan, and at the time, his deficits were the largest in American history. If he’s McCain’s standard for responsible budgeting, we’re in trouble.
Second, McCain hails Reagan’s example for not raising taxes, but this overlooks a key detail — Reagan did raise taxes, several times, to prevent his budget deficits from spiraling out of control and making the national debt even worse. Is McCain prepared to follow Reagan’s lead on this or not? (McCain did take a no-new-taxes pledge on national television a few weeks ago, though he has since said he may not have meant it.)
Third, McCain’s tax plan costs more than $2 trillion, on top of the $400 billion deficits he would inherit from Bush, and yet he still claims he will balance the budget in four years.
And fourth, McCain concluded, “I believe we can grow this economy, and reduce this deficit.” This is so utterly foolish, it’s hard to believe a serious presidential candidate would be willing to say it out loud.
In just the past couple of months, McCain has been confused about the relationship between taxes and revenues, confused about whether he thinks our current economy is strong or not, confused about why interest rates even exist, confused about his own no-new-taxes pledge, confused about his own Social Security policy, and confused about how he’d pay for yet another round of reckless tax cuts.
After a quarter-century in Congress, when it comes to the economy, the poor guy sounds like he has no idea what he’s talking about.
Maybe the senator could take a few weeks off, read a book or two, and get back to us?
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I apologize for not reading all those words you wrote, but I like to mention that one thing caught my eye: Reagan.
McCain is a new Reagan? Cool. Sign me up. Reagan was great.
[/lum day la roo mode]
Reagan's economic policies were a disaster for Americans, not to mention he armed Saddam with chemical weapons and was in favor of Apartheid.
The US Economy Since 1980
He's right, taxing and regulating the economy is not going to work! We need to cut entitlement spending (nobody is entitled to anything but that for a different threat), need to be massive reduction in that! I think raining in the defense budget somewhat would help. Just so you guys know the growth of the 90's was a direct result of Reagan's policies!
Oh shit, McTrickledown has spoken, this would be the final social economic nail in Americas coffin.
Can we impeach him now before he been
electedappointed to the job by thepeopleSCOTUS !With statements like this, God willing we'll start to see some of his bootlickers in the media start to falter on their line. They can't say that up is down forever.
McInsane is going to pull free money as well as rabbits out of his arse too.
putting a rich man in the White House is the quickest way to put the rest of us in the poor house.... let me rephrase that...a stupid rich man.
chris @ 4:
We are supposed to be learning from Chris, who still hasn't learned to spell.
Hey... give him credit. At least he didn't mention Giuliani's plan of offsetting revenue shortfalls from cutting taxes by cutting taxes further.
Obama can't win the big states, disrespects the voters with his arragont, elitist rhetoric, played the race card instead of admitting his radical, spiritual adviser was a big mistake and can't apologize to the voters he disrespected.
He will lose PA by 20 and the supers will go to Clinton.
Game over.
Time to unite with the fighter Clinton to get our country back in the right direction.
We will crush mcwar in the general.
Good Gaawd! As if we need another Smeagol in the WH searching for the ever elusive 'precious'. Won't someone in the GOP take grampa aside and mercifully share some basic economic principles with the confused soul, before he makes yet a bigger ass of himself? This is of course assuming that there is at least someone in the GOP who actually understands basic economic principles, which I strongly doubt.
Reagan saved America. He won the Cold War. Before his supply side economics, the budget was actually balanced!! Can you imagine such silliness! People didn't know that we could borrow, borrow, borrow and be secure in knowing that the supply side elves would use their mystical powers to make the debt disappear in the future. Silly liberals! Reagan could fly. AND he could make himself invisible. BOTH! Ironically, after leaving office, he died of Alzheimers': the ONE disease his magical, healing hands could not cure.
Hey! McCain's plan for America: No Dept. of State, no Dept. of the Interior, no Dept. of Agriculture, no Dept. of Commerce, no Dept. of Labor, No Dept. of Health and Human Services, no Dept. of Transportation, no Dept. of Education and no Dept. of Energy. The USPO is cut loose and sold to FedEx. The Dept of Housing and Urban Development is kept. They need someplace to stuff with political incompetents.
Just one big huge pulsating Dept of Defense (after swallowing the CIA, NSA, the FBI and the Dept of Homeland Security). Oh, and more tax cuts.
And just think, Bush wanted to bomb Iraq back to the stone age. Hell, McCain will have us there soon enough.
McSame will be president, 'cause he's already been selected.
Isn't that what he meant about 'reducing regulation'?
Candice @ 2:
Fractional Reserve Banking creates wealth by issuing debt. At some point the currency has to be "collapsed" so they can start over.
Pegging currencies to real things such as silver/gold/energy? stops the bankers from being able to print themselves out of trouble.
The federal reserve which is as federal as federal express exists to benefit an elite group . . the CIA is Wall Street's enforcer agencie.
Do your own research . . . we're going to lose a big bank before the summer
getalife @ 11:
You are well-named.
McCain: The New Reagan.
George Dubbie: The Old New Reagan.
Do the "fuzzy" math.
Next up: The Laffer Curve. Less income = more revenue! It works! Seriously! In spite of all the evidence to the contrary! If you'd just work for nothing, you'd be rich!
#13: Joeedugan:
Another thing Reagan did not choose to do was try to save the lives of thousands of AIDS sufferers. His name is synonymous with Murderer.
I'm sure the press just thinks McCain's ignorance on so many important issues just makes him that much cuter and more endearing. He's just sooo cuddly don't you know.
So we've gone from voting for a candidate we can become an alcoholic with to one we can cuddle with.
When will the ghost of Ronald Reagan finally be exorcised in America? McCain keeps old Ronnie's ghost alive by saying "...the government is the least efficient way to spend your money..."
BUT....
Giving KBR 99 of your taxpayer dollars to clean a bag of soldiers' laundry is efficient?
Giving a politically connected Texas-based company 1,000,000 US taxpayer dollars to make cement in Baghdad when an Iraqi business can do it for 200,000 (and employ Iraqis) is efficient?
Wasting billions of taxpayer money on "cost-plus" is efficient?
Passing laws so that US citizens will be breaking the law if they buy the same pharmaceuticals in Canada for cheaper is more efficient?
And on and on and on.....
This is nothing but corporate socialism and socialism for the rich and well-connected being passed off as "the magic of the marketplace" and supposedly superior "private enterprise" and "capitalism". Have we had enough yet?
Listening to him speak would be humorous if it were not so sad. He speaks only in generalities and says nothing specific. He morphs himself to appease his corporate/defense handlers. It's like a verbal form of morphine.
Fascists often tell me to take some valium so I don't rant. I tell them the whole country needs the aerial sprayng of Narcan
"...and we put in governmental reductions in regulations..." McCain reflecting back to the good old days.
We can see how well that is doing today with the Airline Industry, the FDA, Mining... shall I go on?
Trickle down on this, pal.
bwah @ 15:
You are so right!
Maybe reagan wasn't the antichrist ( I remember the days that was all the talk) but he sure started the freefall that is America's decline.
reductions in regulation helped no one but the corporations who have nothing good to do with those they employ
wasn't ronnie raygun against socialism seems corporate socialism is ok any other kind is wrong
If everything is sooooo good with trickle down ( what a failure) why don't uber rich pull the country out of recession. Giving the average joe $600 to jump start the economy ( another joke)
unsurebtwilling @ 26:
I was thinking the other day that, maybe it's the corporations that are the antichrist.
Those Reagan figures would be impressive if one didn't have to ttake into account the fact that all economic measurements have been re-defined since that time. Chances are that REAL unemployment is at least 10% and certainly never went below 8% using the old standards of measurement. Likewise, anyone with even the least smattering of an education in economics knows that tax cuts are literally 'lost' money in that they are no longer focused on stimulating economic activity by, say, a responsible administration that hasn't taken on as its prime purpose in being the demonstration that government doesn't work. When it comes to economics, Friedman is the nutcase and Keynes the realist, but corporate media just isn't interested in the facts.
Since Reagan...dollars worth much less...real wages much lower...much less regulation of banks and big biz, all corporations = 10 x fraud and other biz abuses. Fewer media outlets...planet more polluted. McReagan/McBush/McCrazy....what a future.
rain @ 25:
So is this going to be your excuse when he wins? Can't say I'm surprise, blamed the last two elections on cheating, just accept the fact nobody likes secular-progressive policies
PS> He opened up the economy and defeated Communism, what more do you people want?
Stormcrow @ 28:
All true, and the "umemployment" rate only reflects those who are collecting unemployment checks; it doesn't count those who have been unemployed so long their eligibility is gone. Also, it doesn't count those who are UNDERemployed, i.e. those whose jobs have gone overseas and have been forced to take a job far below them re: skills and wages.
chris @ 30:
Yeah, right; he opened up the economy for corporations to profit at the expense of American individuals.
And Reagan was a DISASTER for the environment, a horrid example Bush is emulating.
Plus, Reagan was just plain dumb and an embarassment to America. Wow, I guess Bush IS Reagan II!!
Matt Hussein in Texas @ 32:
Hmm, I guess that why he's remembered as a great president by Americans, a man's man, true American Patriot. His economic policies allowed corporations room to grow so they could make the products you love so much, cell phone, computer and ipod to name a few, think about that son........
Candice @ 2:
What's wrong with the Republicans that they keep using that idiot for a role model? Also, I am very dubious about all the stuff Iran is supposed to be doing. Remember The Iran Contra affair. People who live in glass houses shouldn't throw stones.
mystic @ 20:
Silly liberal, there was no AIDS in the lost, mystical world of Reagan's 1980s. Thats a liberal fairy tale, like "Trading Arms for Hostages" or "Contra War-Crimes". If there had been AIDS back then, Reagan would have used his magical, healing hands to cure the AIDS patients.
Then he would have cured their homosexuality.
Bill Clinton had a plan to wipe the federal deficit by 2020. (Obviously, that's not longer in play).
How do you do it? Tax the shit out of everyone and don't spend it on anything.
That's how you remedy a deficit. A monkey could figure this out.
Of course, Bush has us in debt with other countries to pay for the Iraq War... so obviously it'll be harder.
Get used to the fact that NO Presidential candidate can fix this economy. America is going to SUFFER some serious economic woes.
How do you do it? Tax the shit out of everyone and don’t spend it on anything.
That’s how you remedy a deficit. A monkey could figure this out.
Of course, Bush has us in debt with other countries to pay for the Iraq War… so obviously it’ll be harder.
You can't just tax the shit out of everyone. But yes, you do need taxes to pay off the deficit. And you need to spend less than you're taking in. And what you're spending it on, needs to be overhauled and made more efficient. (ie do you really need to spend so much on Corporate Welfare, bailouts of white collar criminal organisations and the military industrial complex?)
chris @ 33:
Maybe in fantasy neocon America, but there are just as many Americans who remember him as a dim-witted, lazy bigot. Or don't you remember how surprised he was when he realized that people lived on the streets and were poor in America.
And his "wonderful" economic measures but the U.S. in a huge deficit.
Defeated communism? The USSR was a rotting relic way before he became President. Mikhail Gorbachev deserves the credit for realizing that drastic change was needed. Or don't you remember glasnost? Or Lech Valesa in Poland?
Perhaps you are too young to remember all that, and just believe the revisionist history that Fox News and Regnery Press feed you.
Oh, and don't forget that this "great" guy committed treason by sellinlg weapons to the Ayatollah to support righwing death squads (the Contras) in Nicaragua and Honduras in clear violation of U.S. law.
Yeah, what a great American. Glad he's dead.
enor @ 24:
Please spare us from McCain. Those of you who can't afford health insurance or are under insured will have to take Bush's advice. Take care of yourselves so you won't need insurance. They need to regulate the insurance companies. They take your premiums (if you are in perfect health) and try to find everyway in the world not to pay your hospital bills. Their profits are obscene. I(f you haven't seen Sicko, you need to rent it. One woman 32 years old got breast cancer and her insurance company wouldn't pay for her treatment because they said she was to young to have breast cancer. I'm sorry, but when these companies are not regulated they will suck the life out of you. People are greedy self regulation stinks. Call me a socialist if you want to. I have health insurance.
No, no! Don't encourage him to read any books. Let him remain as dumb as he is, then he'll be even easier to beat. Can't you see him in a debate with the Democratic nominee,(I'm voting for either one) being asked a question and just getting stuck.
typop: "....put the U.S. ....
chris @ 30:
McBush is flat wrong about Reagan. The fact is that Reagan pushed and got passed the largest tax increase in history--he doubled social security taxes that hurt the average worker thereby beginning the neocon war on the middle class that continues today. At or near the same time, Reagan trashed and drasticly cut taxes on the rich for his friends and buddies, all at the expense of the middle class. The trickle down crap just don't work, except it makes the rich richer. Reagan was a snake, a liar and set in motion all of the economic problems we have today. This is why he is the REPUBLICAN$ hero. He should have been stoned and hung.
"...just accept the fact nobody likes secular-progressive policies"
Boy, are you right! No one likes to have medical care. No one likes clean air and water. No one likes to look forward to collecting social security after spending their entire working lives paying into it. No one likes the idea of getting out of Iraq. No one wants to stop bailing out the super-rich every time their irresponsible gambles go wrong. No one wants a judiciary system that can't torture. No one wants to feel that the president won't snoop on them or try to destroy them if they stand up to him.
Face it, liar: the American public agrees with us wacko liberals on just about every issue. That's the truth, not your hagiographic right wing spin about that criminal Reagan.
think about that son……..
And don't call me "son" you asshole! I'm probably older than you, and you CERTAINLY are not my father.
Green Eagle @ 45:
But, but, but.......Americans DO like jelly beans, so Reagan WAS a great president.
And, oh Johnny-boy, what about the rise in the number of homeless caused by the Reagan trickle-down theory and practice?
The reason the REPUBLICAN$ have won elections since Reagan is that they were very clever and were able to solve the huge problem they had: How can we get the stupid dumb poor farmers and middle class fools to vote for us and directly against their own financial best interests? Hey- let's come up with a lot of hot button issues and the idiots will be distracted like----abortion, gay marriage, Gays, religion, guns, second amendment, patriotism, lapel pins, etc. Hey all you dumb pfu*k repubs, they have stoled you blind and laugh at you at the same time.
Trickle down economics should be renamed as "Scraps that fall from my plate" economics.
In the same way that Compassionate Conservatism was renamed as Cheap-labour conservatism.
The economy is just like the Olympics. If a president has a strong economy that benefits everyone, while making the tough choices necessary to reduce the deficits left by irresponsible predecessors, than that president (Bill Clinton) gets a Gold Medal. If a president brings the economy back from the depths of a devastating depression (FDR) they should get a Gold Medal as well.
Supply Side Economics is just like the Special Olympics. It's a very special economic theory for very special people who maybe can't add and subtract like you and me, but that doesn't mean that they are not very special. In Supply Side Economics you can spend as much as you like, borrow as much as you like, you never have to make any tough decisions and you never have to face the consequences: future generations do that.
Ronald Reagan and George W. Bush don't get any Gold Medals, but they both get a cookie and a Big Hug because they are so very special. They might even get a juice-box, too. Yay!
Chris@30: You remember getting that cookie, don't you?
Republican Main Motto: I got mine, the hell with everyone else.
Oh, and although they fiercly deny it, they are all flaming racists, just like Reagan.
hey all you good racist Repubs?
WHO IS THE REPUBLICAN'$ BIGGEST HERO AFTER REAGAN?
Don't tell me Lincoln, he was fer civil rights for all Americans, just like McBush who voted AGAINST EVERY piece of civil rights legislation. So, com'on Who is it?
.
Johnny McDreamy of a balanced budget.
.
It's either John Rambo or John Wayne. I can never remember which.
You've got to hand it to Reagan. He sure could act.
And if there's one thing neocons love, it's Hollywood actors who delve in politics.
JTM @ 18:
Now that is a good neo-con. No real issues to talk about. So let's talk ideology and racism. Thats' political debate in the neocon fantaasy world.
HeyCaptain@53: Hero is an understatement. He's like a God to them. It's Ronnie then Jesus. Among mortals #2 is maybe Margaret Thatcher or W. There are way too many Southern conservatives out there for it ever to be Lincoln.
This modern Conservative Movement is a cult, like Scientology or the Moonies. They have their deeply held, but wacky, beliefs and nothing will sway them. Under their beliefs, Reagan is responsible for anything good under Clinton, while everything bad under Reagan was the fault of Jimmy Carter.
Almost all Conservative leaders in the U.S. in pre-WW2 times were either head-in-the-sand isolationists or out and out Nazi sympathizers. Ask any Conservative now about how the U.S. won WW2 and they'll say that it was because of the strong conservative leadership of Winston Churchill!
HeyCaptain @ 53:
Why do Repugs have to be racist? Because they tell it like is? Maybe because they don't want you getting a free ride your whole life.........
[chris, you're skating on thin ice here. Flame wars will be shut down. - sitemonitor]
[My thoughts exactly. chris has been warned by me that banning could be imminent if he breaks any kind of rule at all-Another Sitemonitor]
These Republican assholes (that's a bit redundant) amaze me. Any problem, and the solution is to cut taxes. It's like a broken record. War? Cut taxes. Deficit? Cut taxes. Wife's pussy is a little dry? Cut taxes.
Whoa. Now stop, think, turn down O'liely and carefully read your post. Does it make sense you dumbph**
A free ride?? I am 60, have been working 53 YEARS! this is a great example of how brain (?) washing goes on, you idiot. Cheney would rather fart in your face than look at you,stupid fool. Do you have your lapel pin on? Do you have your NRA MEMBERSHIP CARD in your pocket? Are you marching against abortion tomorrow?Do you have any $ in your pocket? Hey,WHAT ARE THE REPUBS DOING FOR YOU SUCKER????????????
McCain is not only clueless, he is a bad actor. Reagan was a great actor and could lie convincingly, McCain cannot lie like one of the great GOP liars of all time (hence his being revered)
However, George W. Chimp cannot lie either, and is an even worse actor than McCain and is serving out his second term. The lesson seems to be you should never underestimate the stupidity of your audience.
“When Ronald Reagan came to office,” he said, noting that few in the audience were old enough to remember, “we had 10 percent unemployment, 20 percent interest rates, and 10 percent inflation, if I’ve got those numbers right. That was when Ronald Reagan came to office in 1980. And so what did we do? We didn’t raise taxes, and we didn’t cut entitlements. What we did was we cut taxes and we put in governmental reductions in regulations, stimulus to the economy….”
-----------
Stimulous to the economy created the 10% inflation and 20% interest rates.
In fact, it is noted in "Secrets of the Temple", that Volker raised the rate to the final 20% number as a result of Reagan's tax cut proposal, as he found it too stimulating, while he was trying to fight an inflation spiral. When Volker finally cut rates, borrowing resumed and pent up demand from the recession was released, stimulating the economy.
Polititians are such frauds, whether democrat or republican.
McCain is not only clueless, he is a bad actor.
--------------
They are all clueless, whether democrat or republican.
Inflation leads to deflation.
Regulation leads to deregulation.
A boom leads to a bust.
The Great Depresson occured while both a republican and democrat were president.
A cycle has an up phase and a down phase.
The rest is all political cheerleading. Both republicans and democrats are greedy, as they both want what someone else has.
Republican Main Motto: I got mine, the hell with everyone else.
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Actually that applies to both parties. NAFTA, GATT.
"Grow the economy", eh?
Wasn't it Bill Clinton who coined that phrase (or at least made it a household phrase in 1992), and when he did, Republicans laughed at it and said you can't grow an economy?
“Grow the economy”, eh?
Wasn’t it Bill Clinton who coined that phrase (or at least made it a household phrase in 1992), and when he did, Republicans laughed at it and said you can’t grow an economy?
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I remember "It's the economy, stupid".
As for growing the economy, that comes from expanding debt. Which makes a credit crunch a dangerous thing to an economy. Which is why the FED created teh TAF, TSLF and PDCF, to dole out more debt.
McCain is obviously clueless when it comes to the economy. He is a professional politician (like Obama and Clinton by the way). They have not the foggiest idea of how their policies affect the rest of us.
When you cut taxes without cutting spending you are in trouble. When you increase taxes for yet another failed government program there is an affect. When you have to borrow money from China to fund a senseless war you have a problem. When you play games with a monetary system to try and make wealth from thin air you have a problem.
Neither party understands the basics nor do they grasp the consequences of their actions. It won't matter who is elected if they simply don't get it (and I put all three in that camp). Unless that candidate says we need to reasonably increase taxes, drastically cut spending, have a balanced budget and start paying down the debt we are doomed.
McCain votes against Bush's tax cuts but Bush won and McCain saw that the deficit blossomed and he said 'This is good' we must make the cuts permanent. This is one way of having our siblings pay for the support they demand of us - with interesst.
How many of you poor suckers are going to leave behind a $5,000,000 estate? How many of you workers live off Capital Gains? If they cut income taxes - just as an example - by 10%, those who are paying $1,000 will save $100, those paying about $100,000, will get $10,000, those too poor and most needy, and not paying any taxes, get nothing. The poor guy will spend his $100, the rich guy will invest his $10,000 and earn more tax-free Capital Gains and build his estate.
How is this not 'Tax Cuts for the Rich'?
Go to PBS.com and watch NOW with David Brancaccio for 4/11/2008 - it's a mind-opener.
Sorry - should be PBS.org
chris @ 4:
Just so you understand one thing, they took our money for the very purpose of entitlements to ease us out of our ebbing life and many never get to collect it before they kick off. So if you don't think we're entitled to whats rightfully ours to begin with then give all of our money back. Regan was a quadruple dipper of the worst kind.
Said he'd never deal with terrorists and got swindled by them twice with our money. So go erect your Ronald Regan christmas tree and worship his "ketchup is a vegetable" goof ball old lady and his "thousand points of light" murdering VP and his goblin faced bulldyke old lady and go fuck yourself.
We need another ronald regan like we need another Goofy White Boy.
Come to your senses Man! Look what they've done to the country everytime you look in the mirror.
Most people either don't remember Reagan / Bush's mess or weren't even born, yet.
McCain is striving to sound and look like Reagan; the old laid back Grandad image that's just fake. McKook is a fraud, an adulterer who sees somehow that it's HIS right to be President.
Hero? How's that? McCain was bombing peasants when he was shot down in a jet that cost taxpayers millions and he surrendered, without a shot being fired.
Did he save someone's life on a battlefield? No. Did he rush into a burning building and rescue children? No, he bombed them. Was Vietnam attacking the US? No.
McCain is a war criminal who dropped napalm on villagers and later made 39 broadcasts on Radio Hanoi denouncing the USA while American boys were in the fields, fighting and all his records from Vietnam should be released to the American public.
mCcAIN IS no wAR hERO:
if the American voter wants to play 'closest to the pin' on the issues and the amount of concern and commitment to address them, barack obama wins. he ain't perfect-that's where we come in-to remind him, to prod him(because he is proddable) and insist on....whatever we insist upon. that's just one reason i will vote for him. mccain won't budge, and clinton is out of the question and bill will insist SHE not budge, since it's only the lowly voter trying to get her attention.
Most people either don’t remember Reagan / Bush’s mess or weren’t even born, yet.
That would go along with Hoover's mess, Roosevelt's mess, Truman's mess, Eisenhower's mess, Kennedy's mess, Johnson's mess, Nixon's mess, Ford's mess, Carter's mess, Clinton's mess and Bush Jr.'s mess.
It's sad to see that even after two failed supply-side experiments (at least in increasing revenues through tax cuts), we have McCain talking about doing another one. When I looked at the numbers, the results were pretty much what one would expect. When taxes are cut, revenues go through a quick drop and then continue to grow with the GDP as before, just at their new lower level. Hence, tax cuts are not a free lunch. They require us the weigh their benefits versus their costs, just like most things in the real world.
I've posted the results of my study of the numbers at http://home.att.net/~rdavis2/taxcuts.html. For years, I've asked supply-siders to tell me any specific numbers or conclusions in my analysis that they disagree with. Alternately, I've asked them to post a link to one serious economic study that purports to show evidence of any income tax cut that has ever paid for itself. None have.
This is one of the insidious problems with the myth that tax cuts pay for themselves. It's now impossible to have a rational conversation with many supply-siders about the costs versus the benefits of tax cuts. If tax cuts are truly a free lunch where everybody wins, no such conversation is necessary! I can't help but wonder if this short-circuiting of the debate is a major reason why many Republicans make the argument that tax cuts pay for themselves. They support them for other reasons but use what they know is a phony argument to avoid debate.
What a simpleton.
John @ 55:
John Wayne Bobbitt?
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