Re: Reaganomics & David Stockman
Reaganomics had many positive effects. Marginal tax rates were as high as 70% and they came down to 28%. They were too high and that the lower rates were a good thing. Perhaps they were dropped a little low for wealthy people. Reaganomics did advocate cuts in government spending but that didn't materalize. Defense spending, in particular, went from $130 billion to $300 billion. The national debt, which had taken 200 years to accumulate to 1 trillion doubled, then tripled under President Reagan. So although the economy took off due to the tax cuts and the beneficial supply shocks of lower oil prices and surplus food, the debt problem was not taken care of as promised by Reaganomics. The budget was supposed to be balanced in four years, not double and then triple.
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