Grappling with the mish-mash of American politics
The core of the ideological economics debate the country has beared witness to over the last few years centers on essentially 2 elements;
1) Taxes and regulations are slowing the recovery and restraining growth and hiring
and…
2) Demand is the primary mover of job creation, especially during an economic recovery
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From the New York Times
WASHINGTON — The Congressional Research Service has withdrawn an economic report that found no correlation between top tax rates and economic growth, a central tenet of conservative economic theory, after Senate Republicans raised concerns about the paper’s findings and wording.
The decision, made in late September against the advice of the agency’s economic team leadership, drew almost no notice at the time. Senator Charles E. Schumer, Democrat of New York, cited the study a week and a half after it was withdrawn in a speech on tax policy at the National Press Club.
But it could actually draw new attention to the report, which questions the premise that lowering the top marginal tax rate stimulates economic growth and job creation.
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In the wake of the Norquist “No Tax” Pledge, the gridlock caused in Congress over raising taxes in any form and attempts by many Republican-controlled state legislatures to further reduce state taxes to spur growth, a new study finds how misguided supply-side economics is during times of economic recovery.
BLOOMBERG- Governors seeking to expand their economies by eliminating income taxes find little support for the idea in the record of U.S. states that lack such a levy.
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With the economy at the core of the presidential campaign, Newt Gingrich has received help from a group of relatively unknown economic thinkers — including two former advisers to Herman Cain — who share an unwavering faith in the school of thought known as “supply-side economics” that rose to prominence more than three decades ago.
Unlike Mitt Romney, who long ago surrounded himself with mainstream Republican economists, Gingrich has turned to more zealous advisers who believe the only true solution to healing the nation’s deficit is to spur economic growth through sharp tax cuts, reduced regulation and a tight rein on monetary policy, rather than focusing too keenly on spending cuts.
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