Home > American Racket. Debt Deregulation, Bubbles, Bailouts and GoldplatedLies > Voodoo Economics, A Bad Idea That Won’t Go Away

Voodoo Economics, A Bad Idea That Won’t Go Away

“Voodoo economics” is the term that George Bush applied to Reagan’s idea that tax cuts for the wealthiest Americans would pay for themselves. We have seen two rounds of them the first round in the early 80’s ended up tripleing the debt by the end of the decade. Clinton reduced the debt in part by increasing taxes on the wealthiest only to have Bush Jr come along and reduce taxes again and well here we are in debt like never before and the Republicans want to make those cuts permanent. So today we offer a couple of links that look at voodoo economics past, present & future?

First from Thom Hartman we have this hopeful post that got me started.

Thom Hartman’s  blog

Voodoo Economics Partially Rolled Back….

Treasury Secretary Timothy Geithner has announced that the Obama administration will let tax cuts for the wealthiest Americans expire on Jan. 1, despite calls from a small group of mostly millionaire conservadem politicians. Mr. Geithner said it’s part of the effort to bring down the mounting deficit, although the White House does plan to extend tax cuts for middle- and lower-income Americans. With the exception of two world wars, for over two hundred years the debt of the United States rarely and only briefly surpassed what would be one trillion dollars in todays dollars. That long American history of fiscal sanity came to a screeching end when Ronald Reagan was elected and dropped the top income tax rate on millionaires and billionaires from 74% down to less than 30%. The result was an explosive tripling of the national debt to nearly three trillion dollars during Reagan’s administration. George HW. Bush, afraid to raise taxes added another trillion or so, and George W. Bush – fully embracing Reagan’s voodoo economics- added almost another five trillion to the debt. While letting tax rates rise back to Clinton era levels is a good start that will probably somewhat reduce our annual budget deficit, the real solution is to end the thirty years of voodoo economics insanity by rolling back the Reagan tax cuts.

Click here to visit Thom\’s site.

Then I went looking for a little history on the subject and got that in spades in this video from the Rachel Maddow show. Here we get the history and the look at the battle that rages today.

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