in nineteen eighty one
our critics charge that letting you keep more of your earnings would trigger an inflationary
explosion send interest rates soaring and destroy our economy
well we cut your tax rates anyway by nearly twenty five percent
and what that help trigger was falling inflation falling interest rates and the strongest economic
expansion in thirty years
present all a's
making his case in nineteen eighty five forty economic philosophy that came to be known
as reaganomics
by president reagan president bombing hairdo troubled economy gray's approach of so-called
supply-side with trickle-down economics
is credited with by someone turning things around in the nineteen eighties as it is flat
job numbers suggest president bombs like i'm economic plan has yet to do the job
as a fair comparison for the two early to judge for some are now calling
all bombing omics dan mitchell senior fellow at the cato institute and then you say we're
going to reduce the burden of government bolivar mo has increased government spartan and that's
why we're not seeing the same results instead of on that
cap obviously it's a little bit early so what i want to make sweeping predictions
but what we did see under reagan was lower tax rates restraints in the growth of government
spending deregulation what we've seen under obama is more government spending more regulation
promises of higher tax rates on january first
and paul i would say is look around the world the countries that have tried that approach
of obama nominates places like greece in france they grow slower i'm not predicting that obama
takaful cause a permanent recession or depression but i am saying that over the long run our
economy won't be as vibrant we're not gonna grow as fast or not gonna create as many jobs
that's what's happened in countries like france where per capita living standards are about
thirty percent below u_s_ levels i don't want to go down that path death a fifth i feel
your missing enormous context you don't when reagan brought down the tax rates he was still
good
fifty percent in nineteen eighty three and that's the numbers you quote and capital gains
pat was at thirty five percent photos are much higher than they are today you want to
go back to the reagan numbers of fifty percent for the highest marginal tax rate from thirty
five percent for corporate tax
well reagan active at the top tax rate although it out of twenty eight percent and i will
never be nineteen eighty three numbers
la jolla simply pointing out that
within a year or chill of reagan's tax cuts actually being implemented the economy started
to grow quickly now obviously even ethel promised tax increase is going to affect next january
first will still have a better tax code than we did late-night jimmy carter left office
so i'm not saying the world's going and i'm guessing that were moving in the wrong direction
and every time we take an additional step to becoming a european welfare state i think
we are consigning ourselves to anymore stagnant economy with higher unemployment uh... look
at you know taxers between nineteen forty five in nineteen eighty were seventy one a
ninety four percent our economy grew tax rates
uh... under bush you know dropped the economy crashes but i want to ask you about the fed
is well remember our what really helpful but i was a reagan recovered was that did interest
rates in nineteen eighty-one at nineteen percent lauren does was a tremendous help now we're
at near zero percent
does the fabric usual s
father the fat on chrysler way deserves the blame
for every session of the early eighties and for the recession that we had in two thousand
eight two thousand i anytime the central bank those with the easy money policy either causes
mala investment or inflation and every session almost always isn't unavoidable consequence
of that kind of intervention but i will get reagan credit he told the federal reserve
under broker do what's best for the economy even if it means we have a little short run
paying he wanted to make america got strong again and that meant getting inflation down
what i worry about what obama and burn anchi isn't also easy money as far as the eye can
see keep interest rates artificially low that's what got us into this mess they have a strong
dollar policy their waves surprising remit on that i don't like the a low interest rates
either then mitchell thank you so much for joining us