Posted by JO on .
In 2001, President George W. Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). This bill called for large tax cuts just as the Economic Recovery Act of 1981 had and largely benefited the wealthiest Americans. President Bush’s approach to economics was very similar to that of President Reagan’s. Explain the assumptions behind the theory of supply-side economics, and describe the consequences of Reaganomics
assumptions: if government does not tax the rich, in their generosity or greed, they will make more money, spending more and more money to make wage earners rich.
Consequences: The benefits never appeard, except for the rich. Rich got richer, workers got poorer. But since the rich saw a battlecry that benefitted them, we now keep hearing the chant: Don't tax us, we are the guys who make the country a better place to live.
thank you bobpursley!