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Tuesday, November 20, 2012

'The Origins of Republican Starve-the-Beast Theory'

Guess who's to blame for "starve the beast"?:

The New Republican Tax Policy, by Bruce Bartlett, Commentary, NY Times: Although it is commonly believed that the Laffer curve - the idea that tax cuts pay for themselves - is the core Republican idea about tax policy, this is wrong. The true core idea is something called starve-the-beast - the idea that tax cuts will force cuts in spending precisely because they reduce revenue. But there are slight indications that some conservatives have awakened to the reality that not only does starve-the-beast not work, but it also leads to higher spending. ...
I have traced the origins of Republican starve-the-beast theory to testimony by Alan Greenspan before the Senate Finance Committee on July 14, 1978...

    Posted by on Tuesday, November 20, 2012 at 08:51 PM in Economics, Politics | Permalink  Comments (29)

          


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