In his recent letter, Steve Davis tells us that Reagan's tax cuts did not work to boost the economy. Why on Earth don't Democrats ever look at the facts about the Reagan years? During that time:
The inflation rate fell from 11.8 percent to 4.7 percent (inflation calculator). The unemployment rate dropped from 7.6 percent to 5.3 percent (Bureau of Labor Statistics). Median household income increased 52.6 percent (US Census Bureau). Per capita GDP shot up an astounding 58.4 percent, from $14,492 to $22,962 (Bureau of Economic Analysis). And the S&P 500 rose 179 percent.
Most objective people would, I believe, look at those numbers and agree that the economy did, indeed, get an extremely substantial boost. Was the national debt reduced? No, the total eight-year increase was roughly the same as the average annual increase during the Obama presidency.
Was that because the tax cuts generated much lower revenues and drained the government's coffers? Most certainly not. Individual income tax revenues increased by 49.7 percent during Reagan's tenure, and corporation income tax revenues soared by 69 percent (Brookings Institution).
So, way more people had jobs (16.1 million more, per Wikipedia), they earned way more money, they got to keep a higher percentage of it (thanks to the tax cuts), inflation didn't ravage their disposable income as before, everybody's long-term investments almost tripled in value, Treasury's annual revenues exploded, and the overall economy took off like a rocket.
Explain to me how that didn't work.
Corvallis (Nov. 3)