They didn't trickle down. The rich got richer and the poor treaded water. The unemployment rate dropped without tax cuts in the nineties due to even more robust growth caused by low interest rate inspired investment. The kind you get when you don't run up big deficits or over stimulate an economy. In the 90's the rich still got richer and even pulled ahead but the rising tide did lift all boats this time. If a large number of the rich hadn't gotten overly gready in that sprint ahead we would have had a softer landing and a quicker recovery. The rising individual debt load in the 90's had to cause a slow down but the market collapse caused by all the scandals would probably not have been as bad. 911 was an additional factor no one could have anticipated outside the US intelligence services who failed miserably.
Regards,
Mark
Current Events » in reply to Consider the alternatives to tax cuts
A note on 80s tax cuts
The whole thread (34 posts)
- Squandering Prosperity
- Another point of view
- Nice Change Of Pace
- Don Quixote, please tell us what policy will cure a natural move in the economic cycle