The Reagan experiment was/is a complete failure. The lesson to be taken from it is that debt stimulates growth. Certainly it hasn’t created jobs nor investment.
We had 1 trillion in debt from 1776 to 1983. Trickle down taxation has left us with 20 trillion in debt in just 34 years. We’ll be sitting on 30 trillion of debt by 2025. Even with super low interest rates we pay 250 billion in just interest every year.
We have had three R admins and two Dem administrations and NONE of them have been able to make the promise of trickle down work. And in doing so we have also borrowed 2.8 Trillion from the social security trust fund, cut infrastructure investment to the bone, cut welfare and aid programs across the board, flat lined middle class incomes, and inflated the monopolies in our society from health care to higher education.
Now look at us .. buried in crazy debt, no new investment in the US by corporate America, which got these huge tax cuts, and people so rich that we’ve inflated the stock market and they have to hide their money offshore, stripping from circulation. Corporations just do stock buybacks and M&A because they generate no new markets or ideas.
Since 2008 the Fed has released almost 4 Trillion dollars into the economy. That puts the 20 Trillion in debt we have into perspective. Yet the real economy is as slow as the depression was. Money velocity is at a depression era low.
Don’t worry though .. more tax cuts are on the way for the uber class.
It is not yet known how much debt we can tolerate but we keep pushing it higher. As I said before by 2025 we will likely be sitting at 30 Trillion in debt. It’s not Democrat or Republican .. it’s giving people and corporations money to incentivize growth which is obviously not working. You want to stimulate the economy? Give poor people money. They will spend it and get it into circulation, increasing money velocity.
Any idiot can give away money .. the key is giving away money that pays back. Trickle Down does not do that and does not work.