under construction 9/25
But what Rubio and the supply-siders don’t get is that this has been know for 80 years, and used by the Democrats. It’s called Keynesian economics. Which the Republicans think that hate. So what’s the difference?
The democrats know that tax-cuts create growth BECAUSE they increase the debt. They also know that this only works in a recession. It’s quite simple. Let people keep more money, and they will spend most of it (especially the middle class—billionaires not so much). And when they spend it that’s good for business and business hires more workers. There’s no Voodoo in that.
But for this to work that government has to keep sending. If it stops spending it will have to lay off workers are buy less and cause business to lay off workers. And that just cancels out the benefit of the tax cut. But to keep spending after losing tax revenue, it has to borrow and so the debt goes up. In a recession it’s worth it to put people back to work.
But Reagan and the Bushes did tax-cut, Keynesian economics in good times and bad just kept growing the debt for no reason. Well that’s not quite true. There is a reason.