2007-06-11 12:38:14 · 10 answers · asked by ♥ Mel 7 in Politics & Government ➔ Politics
It is the name former President George H.W. Bush used to describe the theory of trickle-down economics preached by former President Ronald Reagan. The basic idea is that tax cuts, which primarily help businesses and the rich, increase spending and help the economy, which increases the wages and benefits of normal employees. There is still much debate on whether this theory is actually valid or not.
2007-06-11 12:46:02 · answer #1 · answered by msi_cord 7 · 4⤊ 2⤋
It was a famous phrase used by George H. W. Bush (the first president Bush) to describe Ronald Reagan's economic theories. Mostly, it described the ideas of a man named Laffer that Reagan had adopted. The idea was that if you reduced taxes, you would get such an increase in economic activity that the lower tax rates would actually produce more income.
This idea is still floating about in the Republican Party, in fact, it's now pretty much taken for granted among Republicans. That it has never worked doesn't seem to effect its popularity, since it's politically convenient to pretend it's true.
2007-06-11 19:47:03 · answer #2 · answered by A M Frantz 7 · 3⤊ 1⤋
It is based on Keynsian economics. JFK was a democrat president famous as a supporter of it. (his famous speech "a rising tide lifts all boats).
The underlying theory is that if the economy is strong then everyone benefits. Corporate tax cuts are assumed to make businesses more competitive and they are expected to reinvest the money into new capital modernization. Reagan also believed in this economic theory and implemented it much as JFK sough to.
George Bush Sr. and Clinton left most of Reagans policies in place and even his economist appointees. (Alan Greenspan comes to mind). The economy we have enjoyed since Reagan reversed all of Jimmy Carter's idiocy is due to "voodoo economics."
2007-06-11 19:56:52 · answer #3 · answered by Smartassus 3 · 1⤊ 2⤋
I looked it up on Wikipedia and "Vodoo" is some sort of black magic or religious ritual practice.
I guess some economist have black magic power and sway over our economy, so they hypnotize and trick people to spend more money. That money spent will go towards buying products or services, which keeps the people making the products and performing the services stay employed. And these people with their money will go out and spend it, This black magic will trickle down and manipulate everyone to spend, stimulate the economy and make everyone happy.
2007-06-11 20:11:17 · answer #4 · answered by Goldilocks 3 · 1⤊ 0⤋
It is a term Bush Sr used to describe Reagan's type of economic policies. Basically cutting taxes drastically, increasing spending, and then expecting that cutting taxes would pay for themselves.
It never happened. That's why the national debt is so big. Bush Jr followed on Reagan's footsteps. That is why we are nearly an extra THREE TRILLION more dollars in debt.
2007-06-11 19:46:05 · answer #5 · answered by trovalta_stinks_2 3 · 3⤊ 2⤋
Its Economics Republican style......Like Enron did.....cook the books and calculate the statistics so that you get the answer you want instead of the correct answer.
2007-06-11 19:44:24 · answer #6 · answered by Anonymous · 3⤊ 2⤋
Sorry, but this is a question best asked of your President.
2007-06-11 19:49:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It is what was taught the day Ferris Bueller skipped school...
I know because I watched it today :D
2007-06-11 19:48:55 · answer #8 · answered by Summertime 3 · 1⤊ 2⤋
It is what liberals do when they want to raise your taxes...they call it an "investment" rather than a tax increase.
2007-06-11 19:43:12 · answer #9 · answered by WhyAreYouaREMF 3 · 1⤊ 6⤋
I am sure you are going to tell us.
2007-06-11 19:43:35 · answer #10 · answered by hedddon 5 · 1⤊ 4⤋