If tax cuts stimulate the economy, and the Bush tax cuts have been around for 7 years?

Question

If tax cuts stimulate the economy, and the Bush tax cuts have been around for 7 years... then... where is the stimulation?

and what makes anyone think that MORE tax cuts like the Bush tax cuts are going to stimulate the economy?

Answer 1

This is basic macro economics.  

Without the tax cuts, our unemployment rates would likely closer mirror those of Europe, i.e. 10 - 15% depending on where you are instead of the 5-6% we have here.  (Lower is better BTW.

Givent he pressures our econmy has been under it is amazing the economy isn't 10x worse than it is.

911 cost the economy tens of billions of dollars.

High fual costs have stunted growth.

Low foreign labor coasts have driven jobs from the country.

The collapse of the housign industry

The collapse of the housing bubble

The near collapse of the baqnking industry

Dude, how many bad things can an economy take without collapsing as well?  Many economists are utterly suprised at how resilient our economy is proving to be.

Answer 2

It's That Guy....you are my new hero!!!! Very well put!

Answer 3

the bush tax cuts produced record setting revenues.

you have to compare it to how much worse off we would be if he hadnt.

prior to this new congress we had our lowest unemployment rate since ww2 and our strongest economy since the fifties and routine record breaking stock market reports.

even with congresses best efforts to undermine this, the economy is still sound, which is pretty amazing.

Answer 4

Reaganomics had two inputs and two outputs.  The inputs were (1) small tax cuts, skewed heavily towards the rich and corporations and (2) hugely increased government spending to pump money through the economy. The outputs were (1) small increases in revenues and (2) enormous new debt.

Now whether you are 'liberal' or 'conservative' on Reaganomics depends on which of these inputs you connect to which outputs.  Reagan's tax program had the effect of concentrating wealth at the top--wealth has never been more concentrated in the US.  And the economy was stimulated by massive govt. spending which caused huge debts.  Of course the bill for the debt comes due later, in some other president's time, so true believers in Reagan can blame the new president.

Reaganomics was a spectacular failure, but Republicans, their minds turned to mush by right-wing radio and FOX News, truly believe that it worked!  GW Bush tried as hard as he could to get it to work for him.  Almost his first act in office was to give his rich buddies another big tax cut, and his budget deficits are the worst in history NOT COUNTING the cost of the Iraq War.

I think his people were thinking they could keep up the ruse until the end of his second term, and the economy would then collapse like a house of cards, for which they would blame President Hillary or President Obama.  But they timed it wrong.

Our debt is so large now, and growing so fast, that our currency is losing its value.  Naturally the only solution Bush can suggest is more big tax cuts for the rich, and more debt.

Answer 5

The economy was booming at more than 3% GDP growth every year until this year. Tax cuts will stimulate an economy, but that doesn't mean exceptions (like housing bubble bursting) can't happen.

If you think raising taxes will stimulate an economy, then I challenge you to test that theory. Give away $100 per month to a charity of your choice, whether you can afford it or not, and see how that affects your personal economy. And to make this test accurate, you have to do it like the government, meaning you must give the $100 or you are heavily fined and go to jail, regardless of how it affects your budget or ability to provide for your family.

Answer 6

We were were in a slight recession when Bush took office. Not blaming Clinton it was just a correction after a strong economy in the 80's. This accelerated after 9/11. Tax cuts helped th economy recover. It grew extremely strong from 2002-2006 and has slowed. Just because it slows from a very fast pace dosn't make it a bad economy. Things will rebound as oil prices drop and housing gains strength again.

Answer 7

The economy has been good for the last 7 years , it only started to slow in the last year. The problem is the government spent more and more money as well  

Answer 8

Tax cuts do increase revenue.

Do you think WalMart is the biggest retailer because they raise prices?

Now are you trying to tell me tax increases will stimulate the economy better then tax cuts?

What did you do with your stimulus check Sam?

I'll bet you did not tear it up, you spend it, and then you complain about it, typical liberal logic.

Can you name me one nation that has taxed itself into prosperity?

If you liberals want to pay more taxes then just do it, and quit demanding I pay more taxes.

The ultimate insult to the taxpayer is when the government takes your money, and then wastes your money, and then demands more of your money.

Answer 9

Bush's economic policies have lead to the largest deficit in our nations history and we may never pay it off.  It came close to doubling in less than 8 years which is proof that tax cuts for the ultra rich do not work

Answer 10

I know it's not often reported my the major media, but the Bush economy was pretty good until last year, when the mortgage issue surfaced and killed off the great times. Inflation was low, unemployment low, productivity way up, and government revenues way up.

The lower taxes is what probably kept us from a technical recession, and Obama's heavy taxation solution will only stifle any recovery.

Answer 11

So you are buying this c**p the libs have been selling for 7 years that the economy is bad and the country is going to the dogs. Have you been living in some far away place where they don't get any news? The economy has been going like gangbusters for 6 years. It started to slow down when the Dems got into office in 06 and really slowed when Obama started talking about raising taxes and spending an extra trillion on goodies for everyone.

Answer 12

If we keep listening to pat robertson and o reilly and rush eventualy the corporate tax rate will be zero . guess who gets to pick up the slack ? good for business , bad for working folk . i learned by reagans trickle down economic theory . the only thing that trickled down to me was warm and yellow  , while the bosses got rich .  i guess that is were the word peon comes from . im voting Nader .

Answer 13

Excellent point - the problem is that the Republicans also increase spending and borrowing which more than offsets any stimulus that could result.

Answer 14

Look at it like this... think about when the housing lenders lowered their interest rates.  People bought more houses, and housing values went up.  Why?  Because people could afford them.  It gave them more value for their money.  (sucks the lenders were giving out loans to people who couldn't afford them, which is part of the reason the economy slowed)  Its all the same principle... money should be in the power of the people vs the government.  And just remember the government produces absolutely nothing... all they do is spend money (on things they want to spend it on... not necessarily you and I)!

Answer 15

I am sure the tax cuts did stimulate the economy.

It's stuff totally unrelated to the tax cuts that have hurt the economy.  The credit crisis all those bad loans, and massive spending.  All those dollars spent in Iraq sure are not helping.