Reporter Dave Helling implies that Republicans following former President Ronald Reagan’s example of cutting tax rates would increase deficits, and he said “it isn’t clear” whether Reagan’s tax cuts reduced unemployment (2/1, A-1, “Do we need a jolt?”).
Reagan inherited 20 percent interest rates, 13 percent inflation and 10 percent unemployment. His across-the-board tax rate reduction and deregulation brought on an economic boom that created 19 million jobs in the ’80s and 20 million more in the ’90s. There were 92 months of uninterrupted economic growth, interest rates dropped to single digits, inflation dropped to 3 percent and then lower, family median income rose 11.3 percent and Treasury revenues nearly doubled from $550 billion in ’81 to $991 billion in ’89.
And the economy was nearly twice as bad then compared with today, contracting at 6.4 percent in the first quarter of ’82, versus 3.8 percent in the last quarter of 2008, a year when the economy actually grew at 1.3 percent overall.
The Democrats’ trillion-dollar, pork-loaded power grab they call a “stimulus” would be catastrophic. Government spending has never brought real prosperity.
Reagan showed the way to deal with a tough economy in times much tougher than ours.
Mark S. Robertson