Tuesday, September 11, 2012

Four Years is Long Enough for a Recovery

from a post by Burt Folsom:

"In other words, the Harding-Coolidge Administration cut federal spending by more than one half in three years, and cut the tax rate as well. What was the result? Unemployment plummeted from 11.7% in 1921 to 2.4% in 1923. And we had budget surpluses during every year of the 1920s. We had a dramatic recovery and it happened in less than four years.

President Reagan was under the same pressures as Harding and Coolidge. And although President Reagan did not cut federal spending, he did cut tax rates on top incomes from 70% in 1980 to 28% in 1986. Unemployment again plummeted, while revenue poured into the Treasury—as it did under Harding and Coolidge.

Four years is plenty of time to see a recovery. But it takes the right policies—more individual liberty and less government intervention."

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