What is voodoo economics?

What is voodoo economics?

A slanderous term used by President George H. W. Bush in reference to President Reagan's economic policies known as Reaganomics.

The expression was used by George Bush (the older one) making fun of an economic theory used by his fellow Republican, Ronald Reagan. Basically, the theory was that tax cuts and tax breaks for the rich would benefit everyone; the rich would spend more, and the benefits would "trickle down" to the middle class and the poor.

George W bush is a master at this!!

Cut taxes and increase spending, wow that makes sense! NOT!

But really:

The term inters tingly enough was coined by his father when he was running for the Republican nomination against Reagan in 1980. He referred to Reagan's supply side economic plan as voodoo economics.

the theory is to let corporations and wealthy investors and employers keep more money through tax cuts, which they will in turn re-invest in the economy by expanding their businesses and hiring more people. the wealth will then "trickle down" do the middle class and the poor.

I am not a Republican nor do i think it is a magic bullet, but Reagan used this policy and inters tingly enough, it worked to a reasonable degree and the lackluster economy and high inflation of the Carter years went away. Unfortunately there was a great national debt as a result. Reagan overall was a pretty good president who generally ends up in the top ten.

It was Clinton, however who seemed to modify but not totally abandon supply side economics (after inheriting a poor economy crippled by debt from the first Bush) and grew the economy and jobs while paying off the national debt and balancing the federal budget. He was the first president, I believe, since Eisenhower who left office with the government having a surplus. Clinton seemed to really get it.

It didn't take long for Bush (Goerge W.) to rid us of the surplus and now the debt is at record levels.

this makes me lean to Hillary for 2008 as it appears she will employ the economic strategies that Bill used.

We must get rid of the debt.

Well I did go on, but to recap that was George HW Bush's name for supply side economics.

Voodoo economics was the term that Bush I, in the 1980 primary elections, applied to supply side rs claim that the Reagan tax cuts would pay for themselves (IE that government tax receipts would not decline) . Bush proved to be right and the government ran large deficits for the next 15 years.