"We must keep the rate of growth of government spending at reasonable and prudent levels.
We must reduce personal income tax rates and accelerate and simplify depreciation schedules in an orderly, systematic way to remove disincentives to work, savings, investment and productivity.
We must establish a stable, sound and predictable monetary policy.
And we must restore confidence by following a consistent national economic policy that does not change from month to month....We must balance the budget, reduce tax rates and restore our defenses..."
This policy was enacted in part, although some of the goals not implemented have seriously dampened the success of the Reagan economic policy.
By Martin Carnoy and Derek ShearerThe authors also disagree with the belief that "redistributing income upward will induce more saving, more investment and greater productivity, all of which will lead to higher growth rates, increased wages, lower inflation and a balanced budget." In their eyes, supply-side economics will produce military oriented products which will not benefit consumers, causing inflationary problems. They call for wage and price controls should be placed on the largest corporations. Banks should have to invest in sectors with high ratios of capital investment to job creation.
New Leader
February 22, 1982
"The [1983] Budget: Guns Up, People Down"
By Sidney Weintraub
In Weintraub's column against the Reagan budget proposal, he argues that the President's advisors have a knack for overlooking the facts and spewing outrageous rhetoric. The administration has flip-flopped on deficits, and the 1983 budget calls for a $91.5 billion deficit. Weintraub complains that the military is receiving an 18% increase in its budget, and that military spending and payment of interest make up 42% of the budget expenditures. This is in contrast to cuts in the following: education down 15%; mass transportation down 38%; highway funds down 21%; AMTRAK down 30%; housing and urban development down 10%; labor department down 17%; and food stamps down 10%. This makes Republican deficits different than Democratic deficits in the eyes of Weintraub. The Democratic budget deficits were associated with expansionary monetary policy to stimulate jobs and production, while the Republican deficits prevent strong economic policy.
New Republic
April 20, 1987
"Reaganomics, R.I.P."
By Uwe E. Reinhardt
In Reinhardt's opinion, supply-side economics has not brought any good to the US economy. He summarizes supply-side economics as the following: "cutting tax rates increases (government) revenue; inflation can be reduced without a transitional period of unemployment; government expenditures can be greatly reduced without sacrifice of anything by anyone except bureaucrats and welfare queens." These policies are called "free-lunch populism" and "flaky propositions." The situation will not soon end if foreign countries continue to be willing to foot the bill for American IOUs and buy our US assets and property.
The Globe-Democrat blames the recession on factors which were begun before the Reagan Presidency. The recession was caused by double-digit inflation, burgeoning government growth, excessive taxes, excessive money creation and over regulation. The Reagan administration has courageously stayed the course in reducing the growth of spending, continued tax cuts, and sustained defense increases. The future, according to the editorial is that there will be "a strong economic expansion and the long-sought balanced budget." The Globe-Democrat sees the tax cuts as "providing incentives for restoring badly needed economic growth." Despite the recession, it was important for Reagan not to buckle to Congressional calls for delay or eliminate the tax cuts. Because of this, the effects of the tax cuts, which are not short-term benefits, will take place.
Looking Back on the Reagan Presidency
"Ideology and Economic Policy"
By M. Stephen Weatherford and Lorraine M. McDonnell
In their analysis of Reagan's ideology, the two authors cite his personal experience as reasons for him wanting to cut the marginal tax rates. In the 1940s the high marginal tax rates discouraged Reagan from making movies. In the 1960s, Reagan the suburbanite felt the anger from high taxes that would make him want to lower taxes when he attained office.
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