Subject:
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Re: How many things need to stack up before we throw this jerk out?
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Fri, 11 Jul 2003 16:01:07 GMT
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Viewed:
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221 times
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In lugnet.off-topic.debate, Mike Petrucelli wrote:
> Uh... The only thing the government can to do "help" the economy is to cut
> taxes. Everything else only makes it worse or at best has no impact.
Here's a good counterpoint from
> Richard Du Boff, professor emeritus of economics at Bryn Mawr College: "This
> claim is historically inaccurate. Tax rates at the federal level have been
> reduced steadily since the 1960s, except for a very modest increase in 1990
> and 1993, and so has the rate of growth of the economy. The big cuts in
> federal taxes took place in the 1980s -- and those tax cuts were the biggest
> since the Second World War, much bigger than the Kennedy tax cuts of 1962-
> 1964. In terms of real (price-corrected) gross domestic product (GDP), the
> country's economy grew considerably faster in the 1950s and 1960s than during
> the last three decades (70s, 80s, 90s). From 1950 to 1970 -- the era of
> highest federal tax rates -- real GDP grew at 3.8 percent per year. From 1970
> to 2000, the rate was 3.2 percent, significantly lower. If we look at GDP per
> head of population, probably a better measure of the economy's growth, we
> have basically the same story but with smaller differences. Greatest growth
> of all took place during the 1960s (real GDP per head grew at nearly 2.9
> percent per year); in the 1980s, with Reagan's big tax cuts, GDP per capita
> grew only 2.2 percent per annum, same as it did during the 1990s. The moral
> of the tale is that cutting federal taxes does NOT make the economy grow
> faster; history shows that, if anything, the economy may grow more slowly in
> the face of big federal tax cuts. Of course this does not take into account
> state and local taxes, which have probably risen over time -- along with
> rising needs for education, law enforcement -- and cutbacks in federal grants-
> in-aid and other federal transfers to states."
This quote was taken from http://www.accuracy.org/2003/
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