"ndugu" wrote in message
...

Where have we seen this deranged fiscal strategy before? Remember Ronald
Reagan and Supply Side Economics? In the early 1980s, Reagan promised the
nation that if we lowered tax rates on the wealthy, the economy would grow
so much the federal budget would be balanced "within three years, maybe
even
two."
The results, we now know, were a disaster. In 1982, the first full year
after the tax cuts were enacted, the economy actually shrank 2.2%, the
worst
performance since the Great Depression. And the effect on the federal
budget
was catastrophic.

And the economy took off in 1985-88, many jobs were created, and things were
going really good thanks to Ronnie Reagan and his economic policies.



Jimmy Carter's last budget deficit was $77 billion. Reagan's first deficit
was $128 billion. His second deficit exploded to $208 billion. By the time
the "Reagan Revolution" was over, George H.W. Bush was running an annual
deficit of $290 billion per year.


Yeah, Reagan had to rebuild the military and help tear down the Iron
Curtain.




Is there anything to compare this to? When Bill Clinton took office he
intentionally reversed the Supply Side formula, raising taxes on the
wealthy
and reducing them on the lowest wage earners. Supply Side true believers
predicted the arrival of the Apocalypse. Bob Dole said the stock market
would collapse. Newt Gingrich said the world would fall into another Great
Depression.
What actually happened?

Between 1992 and 2000, the U.S. economy produced the longest sustained
economic expansion in U.S. history. It created more than 18 million new
jobs, the highest level of job creation ever recorded. Inflation fell to
2.5% per year compared to the 4.7% average over the prior 12 years.

Real interest rates fell by over 40% producing the greatest housing boom
ever. Overall economic growth averaged 4.0% per year compared to 2.8%
average growth over the 12 years of the Reagan/Bush administrations. Most
impressively, Clinton reversed the mammoth deficits of the Supply Side
years, turning them into surpluses. He used these surpluses to begin
paying
down the national debt.

Interest rates for home loans were 10-18% during this time period. I don't
call that low. Luckily, Slick Willie could continue to ride on the
coat-tails of Ronnie Reagan's economy fixes.



The effects of Bush's tax cut on the deficit and debt are exactly what we
would expect having seen Reagan's results-only worse. Bush inherited from
Clinton a fiscal surplus of $127 billion. In his first year he turned that
into a deficit of $158 billion. In this, his second year, he will run a
deficit of over $400 billion-a swing to the worse of over $600 billion in
only two years.


We are fighting a war, Stupid. We have had several terrorist attacks. We
have had several devistating hurricanes. That **** isn't free.


You liberals sure do like to re-write history. Instead of making this ****
up, try thinking back to your own economic situation (home loans,
employment, taxes, etc.) and also consider the wars, natural disasters, etc.
THEN MAKE UP YOUR MIND.