looking at growth rates since the 1960s, it is evident the low tax rate era ushered in by Reagan did not deliver faster growth. There was a recession in the beginning of the Reagan administration, followed by a catch-up phase when the growth rate went back to normal. Growth rates were a little higher during the Clinton years and declined afterward. Overall, if we take the long-run view (the ten-year moving average, which averages the ups and downs of the business cycle), economic growth has been relatively stable since 1974, remaining between 3 and 4 percent over the entire period. There is no
...more
