Saving the economy By Art Pearl
This economic mess has been a long time coming. Reagan as good as any place to begin. Shortly before Ronald Reagan was elected president the economy slipped into a deep recession. In1982 unemployment rate rose to 9.7 percent (In 1979 the unemployment rate was 5.8 percent). The Reagan solution was “supply side economics.” George Bush called it “voodoo economics.” Supply side economics according to one of its gurus. Arthur Laffer. would, for every 1% reduction in taxes produce 1% increase in tax revenues, (although in 2008 on the Daily Show Laffer insisted he never said such a thing). Amazing the number of stupid things people say that later they claim they never said. Whatever called, it was, in truth, the same ole’ aggregate consumer economics. What made it different was that the underpinning for consumer demand did not come from wages and savings but from an ever increasing debt. One of the most telling points Reagan made while campaigning for the presidency was the increase in nation...