Iriemon said:
Is that right? Clinton "delayed the Bush recovery" eh? Was that the Bush recovery from the Reagan rescession?
No it was the recovery from the Bush recession which was deepened by the hugh tax increase the Democrats passed.
Anyway, prove it please. And make sure you show us how you factor out all other variables that affect the economy like you demand for proof on how tax rates effect the economy. Thanks.
You mean as opposed as to how you and others took revenue growth and tried to state how tax rates alone effect it but argued at the same time that tax rates don't effect the economy.
Sure, here is one study that was done
*Using the Washington University Macro Model, a computer
simulation of the economy, researchers concluded that the
recovery from the 1990-91 recession has not been as strong as
it might have been without the tax increase. Among the effects: *
* * Economic output from 1993 through 1996 was $208
billion less than it would have been -- a loss equal to
nearly $2,100 per household.
* The gross domestic product would have grown $66 billion
more over the period than it actually did.
* A total of 1.2 million more jobs would have been created.
* Potential employee wages and salaries were reduced over
the 1993-1996 period by $112 billion in today's dollars.
* The growth in real personal disposable income over the
same period was reduced by $264 million in today's dollars.
*
*The 1993 tax increase was supposed to reduce the budget
deficit, but partly due to its ill effects on the economy, it
brought in only 49 percent of the new revenues predicted by
the Congressional Budget Office. *
*The economy has been recovering from the 1990-91 recession
since March 1991; but the recovery has been weak. For example,
studies have shown that real median family income has remained
level since 1992, and since the third quarter of 1993 real
hourly compensation (which includes benefits as well as pay)
has not increased significantly. *
*During this recovery, the gross domestic product has
increased less than half as much as the average during three
previous long recoveries -- during the 1960s, 1970s and 1980s.
Industrial production and total employment have increased just
over half as much, and unemployment has declined by less than
half the number during the previous expansions. *
*Source: Scott A. Hodge, William W. Beach, et al., "Is There A
'Clinton Crunch'?: How the 1993 Budget Plan Affected the
Economy," Backgrounder No. 1078, May 1, 1996, Heritage
Foundation, 214 Massachusetts Avenue, NE, Washington, DC
20002, (202) 546-4400. *