Ramadesikan Gandarvakottai's blog

Communism Lasted for 90 Years.......Reagonomics Lasted for 28 Years.

The year 1991 the Soviet Union broke up and following year in USA the a Republican president to raise taxes amidst ballooning fiscal deficit was ousted out of office.

What made a Republican president to raise to taxes, especially the one who followed Reagan is a mystery. Probably he wanted to be responsible unlike other republican presidents who gathered debt while talking about smaller government, cutting taxes and individual responsibility.

The following eight years under a democratic president some fiscal responsibility was established, but in the years of Bush administartion we had fiscal deficit, large government and large government spending.

Reagenites will attribute mid 2000s growth to tax cuts, on the contrary it was due to increased govt spending for security.

Tax cuts and giving the money to the rich have never worked to make the economy grow, especially when there is a strong market failure like we are seeing one now.

If the stimulus work is unleashed targeted at poor they spend to get thee economy going again, if the rich are given tax breaks or refunds as we saw when banks were given TARP money they partied by not releasing the money into the system but taking a huge bonus.

Reaganities didn't have anything to prove their point, but the anecdotal evidence of payments proves Reganomics has failed without any doubt.

Let's be clear rich understand money how to save it, multiply it and invest in companies sending jobs overseas. Middle class will talk about market without knowing anything about it, and poor understand economy better because they know if the inventory piles up in the factory they will loose their job.

The Reagonomics finally died this year after a run of 28 years but Communism lasted for 90 years