Well, apart from the fact that it is a tissue of lies, it is an interesting letter. Tax relief was not "aimed at the rich", it was across the board. It so happened that marginal rates were reduced, and that affected the well- to- do most. However, tax deductions were reduced, as well, so that the "rich" ended up paying more taxes. Investment did, in fact, go up, and the economy did not stagnate. After the 82 recession, which squeezed inflation out of the economy, and ended the "stagflation" of the Carter years, there was an economic boom that lasted until 92. Then there was a 7 month recession, that ended just before the election. Unfortunately, the end was not announced until January of 93, when Commerce readjusted its figures. Then the boom resumed at the same rate as in the 80s. It was not until after the Republicans took over the Congress that the pace accelerated appreciably.
Although the American worker exercised some restraint in making America more competitive, the primary cause of increased productivity is retooling, especially the application of digital technology. And the Republican tax cut would benefit all tax payers. By the way, the phrase "a rising tide lifts all boats" is just a different way of phrasing the "trickle down" theory: economic growth is more important than redistribution to actual improvement in the standard of living of most people.
It is unfortunate that Democrats feel the need to lie about recent history. Attributing the Reagan boom to some sort of "Keynesianism" that no economist recognized at the time was bad enough. Denying it even occurred is just dumb...... |
