11 May 2013 · Comments Off · Categories: Political Economy

The evidence is that Reagonics sounds nice, but doesn’t work.

Tim Donovan wonders why, despite the evidence Republicans are considered to be responsible fiscals, despite the evidence of Reaganomics in practice.

A snippet; read the rest.

While those who adhere to supply-side principles might point to a brief period of economic growth during the Reagan administration as proof of the success of their policy prescriptions, or perhaps instead argue that their economic agenda has never been fully implemented, neither of these arguments can stand up to careful scrutiny. The economic results of neoliberal policies have been consistently devastating, and their failures immediately apparent. Examples abound: the Argentine currency collapse from ’99-’02; the East Asia Crisis of ’97; the “Shock Therapy” technique in post-Soviet Russia; the Bolivian Water Crisis of 2000; the collapse of the Mexican Peso in ’94; the Subprime Mortgage Collapse of ’09 … The list goes on and on. Supply-side ideologues refuse to accept this most basic reality: Their principles are fundamentally flawed and do not work. To continue to base our economic policy, our regulatory policy and our financial policy on their misguided assumptions makes about as much sense as adopting the governing principles of the CCCP [Soviet Union}.

Afterthought:

Reagonics sounds nice because every successful con has a smooth line of patter.

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