C'mon Homer. Let's talk about Reagan.<quoted text>Don't get Homer started on Reagan. I think we all know how I feel.
When Reagan compromised with Democrats on tax increases in exchange for promised spending cuts in 1982, he never budged an inch on marginal income tax rates. Reagan understood that not all taxes, or tax increases, are equal.
The tax cuts extraordinary sparked the longest peacetime expansion in U.S. history. The “Reagan Boom” produced widespread prosperity and helped generate budget surpluses in the 1990s. Carter's recession, long lines at the gas stations and “malaise index” era had vanished.
We have now approached a similar misery index level reaching a 28-year high.
Unfortunately, liberals are unable to separate facts from myths - among them Reagan’s tax cuts created the deficit.
In fact, Reagan inherited chronic deficits since Franklin Roosevelt. From 1981 to 1989, the deficit under Reagan increased from $79 billion to $153 billion. It peaked in 1983 to 1986, hitting $221 billion. Yet, once the economy started booming, the deficit steadily dropped.
Tax cuts were not the problem. Tax revenues under Reagan rose from $599 billion in 1981 to nearly $1 trillion in 1989.
The cause of the Reagan deficits was the 1982 to 1983 recession and spending — as is always the case. And, yes, the culprit was not just social spending by congressional Democrats but Reagan defense spending designed to take down the Soviet Union.
The lesson here is more spending is never the answer.