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How Mitt Romney Finally Killed Reaganomics
Daily Beast ^ | Nov 13, 2012 | Michael Tomasky

Posted on 11/13/2012 11:19:28 PM PST by ExxonPatrolUs

Trickle-down economics died last Tuesday. The post-election chatter has been dominated by demographics, Latinos, women, and the culture war. But economics played a strong and even pivotal role in this election too, and Reaganomics came out a huge loser, while the Democrats have started to wrap their arms around a simple, winning alternative: the idea that government must invest in the middle class and not the rich. It’s middle-out economics instead of trickle-down, and it won last week and will keep on winning.

Supply side was rejected. And in its place, voters went for an economic vision that says: don’t invest in the wealthy in the hope that they’ll decide to spread the wealth around; invest in the middle class, because it’s demand from a prosperous middle class that ultimately creates more jobs, and because doing that makes for a healthier society all the way around.

(Excerpt) Read more at thedailybeast.com ...


TOPICS: Chit/Chat
KEYWORDS: reaganomics

1 posted on 11/13/2012 11:19:39 PM PST by ExxonPatrolUs
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To: annieokie

An.other one


2 posted on 11/13/2012 11:23:57 PM PST by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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To: annieokie

Another one


3 posted on 11/13/2012 11:24:14 PM PST by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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To: ExxonPatrolUs

Daily Beast??? Come on!!!


4 posted on 11/13/2012 11:29:23 PM PST by tallyhoe
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To: ExxonPatrolUs

George W. Bush killed Reaganomics with his New Tone in Washington and Compassionate Conservatism.


5 posted on 11/13/2012 11:31:06 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: ExxonPatrolUs

Idiot. The Kennedy Tax Rate Cuts cut the top rate from 90% to 70%. The top rate in 1974 was 70%.

The rest of this thing is a tissue of lies and tendentious adjectives.


6 posted on 11/13/2012 11:41:57 PM PST by Arthur McGowan (If you're for sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
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To: ExxonPatrolUs

Michael Tomasky sounds like an economics moron.

No economist ever espoused anything called “trickle down economics.” The point about taxes is that they affect the incentives people have to invest their wealth. High taxes encourage the wealthy to protect their wealth in havens, or buy tax-free bonds; they discourage the wealthy from investing in productive enterprises that have higher risk but which also create jobs in the process of earning them a return.

Additionally, if you’ve read about “Hauser’s Law”, you’ll note that irrespective of how high tax rates are, government always gets about 20% of GDP. Tax rates don’t affect how much revenue goes to government, but they do affect the size of GDP: lower tax rates correlate to higher GDP; higher tax rates with lower GDP. Therefore, by raising tax rates, government actually gets less revenue because it’s getting 20% of a smaller economic pie.

A few months ago, Thomas Sowell wrote an interesting essay on the myth of “trickle down economics”, which you can access here:

http://www.tsowell.com/images/Hoover%20Proof.pdf


7 posted on 11/13/2012 11:42:06 PM PST by GoodDay
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To: ExxonPatrolUs
Oh, so that's why Africa is doing so much better than the US! It's because there's so much more demand there! Why wasn't this obvious before?
8 posted on 11/13/2012 11:43:50 PM PST by sourcery (If true=false, then there would be no constraints on what is possible. Hence, the world exists.)
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To: Moonman62

And by eventually becoming a free market guy..../s


9 posted on 11/13/2012 11:46:43 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: GoodDay

Remember, progressives never get the concept of incentives or marginal rates. They view all reductions in tax rates as government’s “giving” people money. And who deserves less to be “given” money than “the rich”?


10 posted on 11/13/2012 11:50:22 PM PST by Arthur McGowan (If you're for sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
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To: sourcery

You got it. The most prosperous economies are those in which people have absolutely nothing. How could there possibly be more demand than that?


11 posted on 11/13/2012 11:53:01 PM PST by Arthur McGowan (If you're for sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
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To: ExxonPatrolUs

the idea that government must invest in the middle class and not the rich. It’s middle-out economics instead of trickle-down, and it won last week and will keep on winning.
*******************************
Oh yeah, a real winner. That is until the middle class and the poor are sitting equally miserable waiting on their health care. Begging for a treatment that can’t be justified financially

We can watch the waiting room TV with all the altruistic liberals flying off to have have their medical care elsewhere or watch them sipping champagne and talking about all the good they do for the little people.

Not much will change for the rich... although they may bless us with a few sighs of pity. The media can take photos and document our misery, so that they may win some coveted prize or whatever.


12 posted on 11/14/2012 12:01:07 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheel barrow)
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To: ExxonPatrolUs

moochernomics


13 posted on 11/14/2012 12:06:14 AM PST by ari-freedom (It's the bennies, stupid.)
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To: GoodDay; ExxonPatrolUs

Well said. The moron author of the article, by describing Reaganomics as “government investing in the rich” is doing more harm than Romney...


14 posted on 11/14/2012 12:23:44 AM PST by MrShoop
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To: ExxonPatrolUs

The economic doctrine of Freeshit won.


15 posted on 11/14/2012 12:46:16 AM PST by FlyingEagle
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To: ExxonPatrolUs

The economics of Santa Clause doesn`t “win” a strong economy, because like all forms of crony capitalism, it systemically picks winners and losers.

But it wins elections, because Americans like getting free stuff in their hands. They don`t give two sh*ts about the long-term ramifications of high unemployment, low wages and lessened expectations, because... well... they got some free stuff.

Striving for the long-term prosperity rewards through hard work and perseverance is seen as a last-century value ... anachronistic and at 180-degree odds with the gimme-summa-dat mentality of today.


16 posted on 11/14/2012 2:20:34 AM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: ScottinVA

Exactly. Reagaonimics will always win the day because “Santa’s elves” don’t really work for free after all.


17 posted on 11/14/2012 2:44:06 AM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: Arthur McGowan

It’s a moral inversion, the belief that my failure to break into your house to steal something is a some sort of giveaway to you.


18 posted on 11/14/2012 2:56:43 AM PST by garbanzo (It's the end of the world as we know it and I feel fine)
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To: Arthur McGowan

There is a boatload of demand in countries like Greece, Spain, and Portugal. They must be the poster child of economic growth.


19 posted on 11/14/2012 3:02:34 AM PST by Flick Lives (We're going to be just like the old Soviet Union, but with free cell phones!)
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To: Arthur McGowan

I like your TAGLINE!


20 posted on 11/14/2012 3:06:24 AM PST by Twinkie (Do unto others as you would have them do unto you.)
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To: garbanzo

I remember a pie chart in a Planned Parenthood pamphlet, showing the various causes of pregnancy. By far the chief cause was “contraceptive failure.” If that’s the case, the obvious solution is to stop using those damn failing contraceptives!


21 posted on 11/14/2012 3:06:39 AM PST by Arthur McGowan (If you're for sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
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To: ExxonPatrolUs

Government “investment” was initially a euphamism for increased taxes. Oh, the Dems would like to increase tax RATES on the wealthy, to nail the coon skin on the barn for subsequent election campaigns, but they won’t realize any more revenue. We are so far beyond the maximum effective tax rate that an increase in tax rates is only going to further decrease economic activity. That leaves 2 alternatives: Printing Money (Ben Bernake) and increased borrowing to fund the “Grand Canyon” of budget shortfalls. (If we had a budget).


22 posted on 11/14/2012 3:10:05 AM PST by Tallguy (Hunkered down in Pennsylvania.)
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To: ExxonPatrolUs

Obama won by 9.5 m in ‘08; currently ahead by 3.5 m. He lost 2/3 of his margin governing as he did. Plus, this really was the triumph of his community organizing “skills(?)” turning out 10,000- 0 precincts. Apparently the “white youth vote “ caught on to the corruption of identity politics, can only hope the Asian vote won’t be far behind.


23 posted on 11/14/2012 3:15:01 AM PST by gusopol3
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To: Irenic

Since the middle class is “where the money is”, so-called middle-out economics is just the government’s way of saying “you’re too stupid to spend & invest your own money wisely.” It also confirms that economic illiteracy is at an all-time high in this country. Thanks is largely due to the public “education” system and our socialist college professors. They’ve convinced 3 generations of Americans that the US federal gov’t owns all money in this country, and that people only succeed by scr3wing their fellow citizens (unless you’re St. Steve Jobs or some other uber-rich capitalist with the ability to construct a cult-like following).


24 posted on 11/14/2012 3:17:47 AM PST by Tallguy (Hunkered down in Pennsylvania.)
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To: ExxonPatrolUs

Why do we let the free enterprise system be labelled “capitalism” or “trickle down.”

BECAUSE WE LET THE LEFT DEFINE US.


25 posted on 11/14/2012 4:05:03 AM PST by SC_Pete
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To: ExxonPatrolUs

You can’t kill truth. You can, for a time, suppress it, or hide it, or distort it - but you can’t kill it.


26 posted on 11/14/2012 4:26:35 AM PST by zencycler
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To: ExxonPatrolUs

What “middle out”???

Them there “middle” went to China under Clinton.


27 posted on 11/14/2012 4:42:30 AM PST by Flintlock (PARANOIA--means having all the facts.)
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To: ExxonPatrolUs

Tomasky, like all lib-leftists, is an ignoramus and a tremendous liar. Lib economics, based on socialist command-type economics, have always been huge failures. “Trickle down” economics is a lie cooked up the typical lib-leftist suspects like Tomasky. Everybody benefits from lower across the board rate cuts. Everybody loses when taxes are raised.


28 posted on 11/14/2012 6:13:24 AM PST by driftless2
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To: Moonman62

Yeah that across the board tax cut by Bush in 2003 which fueled the tremendous growth of the economy and resulted in under 5% unemployment was typical leftist economics. (snicker)


29 posted on 11/14/2012 6:16:06 AM PST by driftless2
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To: ExxonPatrolUs

1. There is no such thing as “trickle down economics” and these liberal commentators know it.

2. Romney was not preaching Reaganomics. (They know that too.) Reagan was promising large tax cuts across the board. All Romney promised was not to raise taxes.

3. As this propagandist knows, supply side was not rejected. It was not on the ballot.

4. Obama may have prevailed in the vote, but that just means Obamanomics will collapse sooner. The people want growth and all Obama will give them is stagnation. Then they’ll want some pro-growth policies.

5. Romney is a liberal Republican who increased the size of government in Massachusetts. He governed the way that liberals would like to see us governed, so he could not be an effective spokesperson for the limited-government, pro-growth, market-oriented viewpoint.

What this dishonest, partisan propagandist is trying to do is preclude real, pro-growth economic views from even being advanced. It won’t work.


30 posted on 11/14/2012 7:13:28 AM PST by TBP (Obama lies, Granny dies.)
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To: driftless2

Bush’s tax cuts as implemented were (as we are now seeing) an unmitigated disaster. Unaccompanied by any discipline in spending, they increased debt (futures taxes). With rate cuts and credits they made a vast swath of the lower middle class into effectively non-taxpayers, who are predictably now permanent Democrats rather than swing voters.


31 posted on 11/14/2012 7:32:14 AM PST by only1percent
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To: only1percent
"unmitigated disaster"

Virtually all conservative economists and analysts disagree with you.

32 posted on 11/14/2012 8:20:41 AM PST by driftless2
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To: driftless2
Yeah that across the board tax cut by Bush in 2003 which fueled the tremendous growth of the economy and resulted in under 5% unemployment was typical leftist economics. (snicker)

The uptick in the economy was from the provisions put in the tax cut by the Republicans in Congress, especially Bill Thomas. Thomas included the capital gains tax cut, something W adamantly opposed. The start of the Iraq war was also a factor (lots of government spending). The rise in the stock market was led by government contractors, and commodities (W's weak dollar helped them, as well as his decision to burn our food in our cars).

And I leave you with W's famous last quote he gave in his exit interview to his buddies at CNN.

"I've abandoned free-market principles to save the free-market system."

33 posted on 11/14/2012 8:26:09 AM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: driftless2

W’s tax cuts were temporary in nature, designed to boost consumerism rather than investment. Such policies provide a temporary boost, but are unsustainable. W’s government spending is in the same category.


34 posted on 11/14/2012 8:37:23 AM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Moonman62
"uptick"

In short you agree that the Bush tax cuts revived the economy. Thank you. And Bush tried the mini-stimulus (which I didn't think would work) because of the advice of a great many people, including many conservative economists, who told him it would be a disaster if he didn't do it. He didn't cause the financial meltdown (thank you Bill Clinton), and he tried to reform Fannie and Freddie. He did spend too much a lot of it probably to get Dem support for the war of terror.

The long and short of it is (1) no community reinvestment act (2) no Clinton admin forcing banks and lending instituitons to make bad loans (3) no Barney Frank or other Dems to stop reform of Fannie and Freddie (4) no financial crisis. Read Tom Sowell's "The Housing Boom and Bust" to get the lowdown.

35 posted on 11/14/2012 8:47:10 AM PST by driftless2
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To: driftless2
What about W's "Ownership Society" and putting people into homes that they couldn't afford?

What kind of regulations did W cut, which would boost the economy without raising debt?

In short you agree that the Bush tax cuts revived the economy.

Nope. W's government spending and debt buildup temporarily boosted the economy, and led to Obama being president and the troubles we have now.

36 posted on 11/14/2012 8:58:46 AM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: ExxonPatrolUs

"It depends on what the meaning of 'invest' is."


37 posted on 11/14/2012 10:27:36 AM PST by Jeff Chandler (www.youtube.com/watch?v=tpAOwJvTOio)
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To: ExxonPatrolUs

Notice how Communism never dies and the Left is even applauding the impending Soviet Reunion.


38 posted on 11/15/2012 10:41:12 AM PST by a fool in paradise (America 2013 - STUCK ON STUPID)
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