Sure like I said, he raised them when the spending cuts didn’t materialize, but it was still a tax cut in total.
I’m the wrong guy to ask for exact figures or estimations. But the principles seem fine.
A stricter money supply is harmful to the economy which is what caused the 1981 recession.
You don’t have to raise taxes. Cut spending would also harm the economy and reduce inflation.
Or tighten credit and let old people make some money outside the stock market again.
Who are they going to make money off of if people can’t afford mortgages?
What about when the property they have loses value because home prices need to come down in order for people to afford mortgages with higher interest rates?
The same old people who wanted tax cuts and social security and the world’s largest military and got that by government funding by borrowing money from social security.
Yep. Best find a way to stick it to the younger generation while you still can.
You don’t burn it you pay off the debt. 1 percent vat tax on non food items would represent about 1 trillion dollars in tax revenue to be used to pay down the debt.
If consumer spending slows some you also can lower your trade deficit as you are not driving up the dollar with interest rates discouraging exports.
Reagan did not do those things. He especially had nothing to do with reducing inflation. The economy, GDP and unemployment are functions of one another – not separate things.
Yeah. People want two sets of interest rates – one for borrowing and one for lending.
The opposite is true most times. Lending rates are higher than savings.
I was actually referring to mortgages (borrowing) and CD/MMF (lending).
Ah ok gotcha
Uh huh, I believe it would be used for the debt and we wouldn’t ultimately end up with debt, the same or higher income tax plus a Vat tax. Because I am stupid.
Admitting is half the battle now try to fix it.
You can’t fix stupid, if you were smart, you would know that.
Because taxes cannot be raised or lowered quickly, and it requires the consent of Congress. Also, frequently fluctuations of tax rates plays Hell with the private sector.
That is exactly right. Furthermore, when they are at such low levels they cannot be lowered further to assist the economy. That tool is useless when the money is nearly free.
That’s a gross exaggeration.
If you have money (meaning you don’t need to borrow) raised interest rates is generally to your benefit, particularly when coupled with lower taxes.
As I stated use a vat tax. That can be used to slow down an over heated economy. It would have also been good to slow the trade gap by reducing consumption without starting trade wars.
And Reagan raised taxes.
People often forget this.
