What does VODOO Economics mean?

Question

My dad says that is what Bush is trying to do with the issuing of Rebate check and such.

Answer 1

VooDoo Economics goes back to the days of Reagan, but I don't see the connection with the rebate checks. Unless he is talking about supply side economics.

Supply-side economics holds that increased taxation steadily reduces economic trade between economic participants within a nation and that it discourages investment. Taxes act as a type of trade barrier or tariff that causes economic participants to revert to less efficient means of satisfying their needs. As such higher taxation lead to lower levels of specialization and lower economic efficiency.