Comments for The Rational Middle

Comment on The Economic Rights Of The Many by noiselull

noiselull — Sun, 06 Nov 2011 00:26:36 +0000

The problem with big government spending is the SPENDING, not the taxation. Spending has to be paid for by either taxation (taking resources from income earners) or the loanable funds market (taking resources from lenders and raising the cost of credit/interest rate). Therefore, spending levels are what matter. Clinton was far better on this issue than Bush was. Spending under Bush rose for many reasons, resulting in a decline in economic growth. Large governments reduce growth. Using Somalia as an example is also not valid. Advocates of small government are aware of the Rahn Curve. Clinton actually had some level of fiscal restraint. The '93 tax increases were projected to be consistent with future deficits. The reason there were surpluses was reduced spending. Then Bush came and increased spending. Clinton was so radically in favor of small government that he favored partial SS privatization. PS: Though I just started reading you recently, you appear to me to be quite open-minded. With more information, I think you can be persuade to come to the true center.

Comment on The Economic Rights Of The Many by Michael Chase

Michael Chase — Tue, 01 Nov 2011 03:59:17 +0000

@SoonerHumanist Welcome to the RM! I am positive that you are the first to ever accuse me of feeding the Reagan Myth. Saint Ronnie the Gipper is a title that (to the best of my knowledge) I created, and not out of any political affection. I would argue that the multiplier affect of all that deficit spending on stateside military applications played a major role in the recovery.

Volcker certainly accomplished the restraint of the hyperinflation caused by the oil shock by monetary policy, but I disagree that either fiscal or monetary policy can work in a vacuum. I hope that the RM will give you ample opportunity to agree, disagree, or otherwise add your voice. The mission (and name) of this column is to provide a rational middle ground for discussion, devoid of personal attacks whenever possible. Thanks for the visit!

Comment on The Economic Rights Of The Many by SoonerHumanist

SoonerHumanist — Tue, 01 Nov 2011 03:27:36 +0000

Interesting post. I found this on Digg and will probably stick around.

I do kind of have a problem with one thing you write in particular: \Saint Ronnie the Gipper himself used the notion in the 1980′s, when massive deficit spending in stateside military projects jump-started the stag-flated U.S. economy.\

You’re correct that supply-side economics don’t work, but you’re still feeding in to the myth of Ronald Reagan. The recession of the Carter administration and the recovery under the Reagan administration was driven primarily by monetary policy; not fiscal policy. Paul Volcker and the Federal Reserve purposely drove us into a recession by raising interest rates up to around 20 percent, actions which brought inflation down from around 14 percent to around 3 percent. The subsequent lowering of interest rates shortly into Reagan’s first term did far more to jump start an economic recovery than anything the administration did. I’m not indicting the Federal Reserve here; I actually think they did the right thing.

If anything this shows even more how bankrupt Reaganomics are, the current Republican myth machine notwithstanding.