Free Market-Friendly Policies for the Win ... But Given Little Credit.

I cannot imagine that there is anything so beneficial that is more widely unappreciated than the incredibly prosperity brought about by the supply-side economic policies favored by people like Art Laffer (famous for the "Laffer Curve") and instituted primarily by Ronald Reagan and largely followed since, especially but entirely by Republican presidents.

It's an embarrassment of riches. In 1982, the Dow was at 800 and is now over 50,000. The market cap for US stocks roughly equals the rest of the world's combined. Quoting from the linked article, "when Reagan came into office: Inflation was running at about 12%, the top income tax rate was 70%, the corporate rate was 46%, the estate tax was 70%, and the capital gains rate was 28%. The economy was in a state of collapse.

Today inflation is roughly 3%, the top income tax rate is 39.6%, the corporate rate is down to 21%, the estate tax is 40%, and capital gains taxes are taxed at 23.4%."

And tax receipts, fueled by growth, soared. The top 1% used to pay about 19% of taxes and now pay 40% even though rates are lower.

And yet ... we scarcely hear in the mainstream media or popular culture any appreciation for this near-miracle. Instead, socialism keeps rearing its head, in various forms, despite an appalling track record when implemented in anything close to its purer forms (e.g., China grew rapidly and prospered only when it largely abandoned socialist principles).

Free market-friendly, supply-side economic policies need better P.R., but thank your lucky stars that we did not get mired in slow-growth, high tax/low revenues that Democrats typically espouse.


Stephen Moore Piece from Patriot Post