Who said voodoo economics

Mr Trump's supposed feat of three per cent growth last year was recently undone by data revisions. So why do voters repeatedly fall for this line? Do they really buy it? It seems so. The rich have their own, fairly obvious reasons for championing voodoo economics. They are pleased to assist in the fiction that cutting their taxes will encourage them to invest more. Instead of higher growth, public debt skyrocketed.

Supply-side economics did not work out quite as planned for then US president Ronald Reagan. AP Photo. The voodoo element of his economic policy was cheered on by Republicans, with the conservative Heritage Foundation even predicting that the cuts would eliminate the national debt within a decade.

And yet there continues to be a deep and abiding belief in a theory known as the "Laffer curve". It was a more sophisticated rendering of the idea of "a magic money tree", the dismissive phrase employed years later by former British prime minister Theresa May. Never mind the rich — why do middle-class and poor people consistently fail to challenge the seductive appeal of the Laffer curve or the hallucinatory quality of voodoo economics?

See some others in this little slide show. But did you know:. Their conspiracy theories and slanders are spreading inside the party. Reading this, people say: I knew that sounded wrong. Now I know why. Buy on Amazon. Download free PDFs no catches. Your email address will not be published. This site uses Akismet to reduce spam. Learn how your comment data is processed. Table of Contents. Polarization 2. How to Depolarize 3. Identity Politics 4. Trumpish Populism 5. Socialistic Populism 6.

Left Mythology 7. Radical Left Thinking 8. Social Change Policy Strategy People. Voodoo Economics. See the what Reagan asked for and what he got. Why this matters Supply-side economics is dishonest. Share on facebook. In the years that followed, some of Bush Sr. The expectation that decreased taxes on the wealthy and businesses would result in increased spending on their part for goods, services and payment of salaries also failed to materialize.

Voodoo economics has since become a popular, widely-used phrase to dismiss ambitious economic pledges made by politicians. Eventually, in , when he became the 41st U. That embarrassing U-turn saw him face criticism from his own party.

He later lost the presidential election to Bill Clinton. Under Bush Sr. The mission was a resounding success but was overshadowed by a struggling U. Tax Laws. Income Tax. Fiscal Policy. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.

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Personal Finance. Your Practice. Popular Courses. Economy Economics. What Is Voodoo Economics? Key Takeaways Voodoo economics is a derogatory phrase used by George H.