Where the "deficits do not matter" mentality came. RR

[WTF]

Eventually one of you Reagan lovers will figure out the truth!

https://flaglerlive.com/8577/david-s...h-trickledown/

Keep in mind: Hayek is speaking his disillusion with the GOP’s misapplication of his theories in 1985. To this day he remains a favored mask of budget-wreckers pretending to be fiscally conservative while pushing for more tax cuts

[Tiny]

This is good news WTF! One of the Saints of Classical Liberalism, Friederich von Hayek, has touched you. And I pray you have become a believer. If you take to heart the wisdom and teachings of Saint Friederich, then many rewards await you in the hereafter. And you shall not spend eternity in hell with Bernie Sanders.

[dilbert firestorm]

.who's saying deficits don't matter?

[WTF]

Originally Posted by dilbert firestorm

.who's saying deficits don't matter?

Everyone that wants tax cuts and to give away free money!

[WTF]

Originally Posted by WTF

Eventually one of you Reagan lovers will figure out the truth!

https://flaglerlive.com/8577/david-s...h-trickledown/

Keep in mind: Hayek is speaking his disillusion with the GOP’s misapplication of his theories in 1985. To this day he remains a favored mask of budget-wreckers pretending to be fiscally conservative while pushing for more tax cuts

Originally Posted by Tiny

This is good news WTF! One of the Saints of Classical Liberalism, Friederich von Hayek, has touched you. And I pray you have become a believer. If you take to heart the wisdom and teachings of Saint Friederich, then many rewards await you in the hereafter. .

Sounds like you need to take a refresher course!

He is blowing up your take on tax cuts, especially as they pertain to Saint Ronald!!! More from the article and Friederich...




Back in 1981 David Stockman was the wonderkid of the Reagan administration–the director of the Office of Management and Budget who’d craft in actual budgets the trickle-down miracle Reagan had promised on the campaign trail: lower budgets, lower spending, higher tax revenue. But trickle-down economics was a wish, not a reality. It’s never worked. Lower taxes don’t generate more revenue. They generate deficits.



Reagan knew it. So did Stockman. So did their guru, Friederich von Hayek. The deficits were intentional all along. They were edsigned to “starve the beast,” meaning intentionally cut revenue as a way of pressuring Congress to cut the New Deal programs Reagan wanted to demolish. “The plan,” Stockman told Sen. Daniel Patrick Moynihan at the time, ” was to have a strategic deficit that would give you an argument for cutting back the programs that weren’t desired. It got out of hand.”

A 1985 interview with von Hayek in the March 25, 1985 issue of Profil 13, the Austrian journal, was just as revealing. Von Hayek sat for the interview while wearing a set of cuff links Reagan had presented him as a gift. “I really believe Reagan is fundamentally a decent and honest man,” von Hayek told his interviewer. “His politics? When the government of the United States borrows a large part of the savings of the world, the consequence is that capital must become scarce and expensive in the whole world. That’s a problem.” And in reference to Stockman, von Hayek said: “You see, one of Reagan’s advisers told me why the president has permitted that to happen, which makes the matter partly excusable: Reagan thinks it is impossible to persuade Congress that expenditures must be reduced unless one creates deficits so large that absolutely everyone becomes convinced that no more money can be spent.” Thus, he went on, it was up to Reagan to “persuade Congress of the necessity of spending reductions by means of an immense deficit. Unfortunately, he has not succeeded!!!” Those three exclamation points, unusually effusive for an economist, are in the original.

[WTF]

More

"This debt explosion,” Stockman writes, “has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts.”

[Tiny]

Originally Posted by WTF

More

"This debt explosion,” Stockman writes, “has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts.”

You've noted that budget bills originate in the House. Which party controlled the House during the entirety of the Reagan Administration? That's a rhetorical question. You know the answer. Could that partly explain von Hayek's comment, that you quoted,

Reagan thinks it is impossible to persuade Congress that expenditures must be reduced unless one creates deficits so large that absolutely everyone becomes convinced that no more money can be spent.” Thus, he went on, it was up to Reagan to “persuade Congress of the necessity of spending reductions by means of an immense deficit. Unfortunately, he has not succeeded!!!

I know you think that's unimportant, because you believe spending doesn't matter. Instead we need to raise taxes. That's classic Modern Monetary Theory.

During the Reagan and Clinton administrations, inflation was brought under control, the middle class made great strides, taxes were cut (including the capital gains tax under Clinton), the Soviets were forced to abandon the cold war and allow Democracy to take root in Eastern Europe because they didn't have enough money to compete in the arms race, and at the end, the budget was balanced. Do you know what the net federal debt was as a % of GDP when Clinton left office? It was 32%. That's a reasonable number, one to be happy with.

And yes, Bush and the Republicans, and Obama and the Democrats turned on the spigots. The Iraq War was a total waste. There's lots of blame to go around for the 2008/2009 recession, and our anemic recovery coming out of it, which resulted in higher deficits as a result of bailouts, stimulus spending and lower government revenues. Who do you blame? A lot of people and institutions -- politicians, regulators, mortgage companies, and investment banks among others. And perhaps most of all Americans who thought it was reasonable to buy $500,000 houses on $50,000 per year paychecks.

And yes deficits and debt increased hugely during the Trump and Biden administrations, over past years, mostly as a result of COVID. And whose fault was that? Arguably Democrats a bit more than Republicans, considering the $1.9 trillion they threw into the American Rescue Plan, which mainly succeeded in supercharging inflation. Not a single Republican voted for the ARP.

[dilbert firestorm]

wtf sanders forgets who initiates spending.

[WTF]

Originally Posted by dilbert firestorm

wtf sanders forgets who initiates spending.

I do not forget nor have I forgotten wtf veto means.

Soon I will do a line item veto of Tiny's nonsense and eviscerate his nativity on such matters.

For instance is propensity to try and shift blame to Democrats is akin to fucking two women bareback that have gonorrhea and blaming the ugly one for giving it to him. Just a complete shitshow.

[Tiny]

Originally Posted by WTF

For instance is propensity to try and shift blame to Democrats is akin to fucking two women bareback that have gonorrhea and blaming the ugly one for giving it to him. Just a complete shitshow.

Excellent analogy! Every fat, ugly woman who gave me the clap was a Democrat.

[Tiny]

Originally Posted by WTF

Soon I will do a line item veto of Tiny's nonsense and eviscerate his nativity on such matters.

The angels wept tears of joy at Ronald Reagan’s nativity. He was one of God’s greatest gifts to America.

[Tiny]

WTF, btw, One or both of the likes for your last post (can't remember whether I liked it on my cell phone too) were from me. That was pretty good, about the gonorrhea.

Also please take my suggestions for improving your vocabulary and grammar (e.g. "nativity") constructively. You're the only one here with the temerity to go up against LustyLad on economic issues, and I'm just trying to improve your chances.

[WTF]

Originally Posted by Tiny

WTF, btw, One or both of the likes for your last post (can't remember whether I liked it on my cell phone too) were from me. That was pretty good, about the gonorrhea.

Also please take my suggestions for improving your vocabulary and grammar (e.g. "nativity") constructively. You're the only one here with the temerity to go up against LustyLad on economic issues, and I'm just trying to improve your chances.

To stay in the spirit, I'll think of both your likes as early Christmas presents.


That said, you should know I have ADHD , rarely proof read and am perfectly fine getting close to the intended word. You would be too if you always posted from your phone (half the time while driving) and understood this is a political forum and not a grammar class.

lustylad like all Reagan followers , is easy to best. They've parroted the same nonsense for the last 40 years. Cut taxes, Cut taxes...and then blame Democrats for not cutting spending!

And I always know when they're bested because they want to change the subject to my grammar instead of numbers.

[biomed1]

To return to the Original Topic . . .

#6 - Respect the topics presented by those who start a thread. Attempts to derail a thread or change it's direction is referred to as thread hijack and will be discouraged. Attempts to guide a thread in the right direction are appreciated, while responses to posts which hijack a thread are not.

[WTF]

The orginal topic is too difficult for Tiny to fathom. It means all these decades of believing in the Tooth Fairy are for naught!

Come on Tiny....I'll walk you through these troubling times. Tax cuts are the reason to these huge deficits. We have trained a nation of so called economic guru's into believing that tax cuts INCREASE revenue!