Dirk the Daring
Platinum Member
- Apr 5, 2009
- 1,040
- 559
I'm going to go more with the former, than the latter.
Hoover cut taxes BAM the great depresssion of 1929.
Reagan cut taxes BAM the recession of 1982.
W. Bush cut taxes BAM the Great recession of 2007.
It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.
It seems quite the opposite, we have more evidence that cutting taxes cause recessions.
Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Bust & Boom cycle.
Even Libertarians like Austrian economist Hayek have spoken of Bust & Boom cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Bust & Boom cycle.
Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.
BAM?
No mention of the mechanism?
I didn't mention the mechanism??
Oh I did in fact, I theorized that Tax-Cuts cause inflated markets such as in Housing & Stock which cause BOOM & BUST cycle.
That's kind of what happened with W. Bush, No?
No, that's not what happened with Bush. At all.
So, the Housing bubble didn't over-inflate under W. Bush??????????
That was actually being spoken of BEFORE the collapse, and yes obviously lowering taxes, especially on the rich does lead to rich using their tax cuts on investing in the Housing market more, thus leading to an over-inflated Housing Market.
You keep looking at the effect and thinking it's the cause. Bush's tax cuts produced higher revenue yields to the federal government for 3 straight years. I know this b/c Obama signed his name on the cover of the report showing this to be true. The housing market collapse was not the fault of tax cuts. The federal government told the banks they were free to gamble however much they wanted and that their losses would be picked up by the American taxpayer. So that's exactly what the banks did.