Trickle Down Economics Doesn't Spur Growth

"Sure. But first of all, it’s not clear that that would add trillions to the deficit, because I really believe that if we expand the base of the economy, which we could do by selectively lowering some taxes, you have a broader base on which to apply the tax."

Pat Toomey, Republican Senate candidate.

Senate Minority Leader Mitch McConnell also stated, "There's no evidence whatsoever that the Bush tax cuts actually diminished revenue." Toomey and McConnell are pushing the debunked trickle down economic theory. The reality is the Bush tax cuts created less revenue growth than the Reagan or Clinton administrations.



David Stockman was Ronald Reagan's former director of the Office of Management and Budget. In an interview, Stockman told journalist William Greider that trickle down economics was rebranded supply-side economics. It is hard to sell to the middle class and poor people that tax cuts for the rich will "trickle" down to them.

"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

In another interview, Stockman said Reagan intentionally used trickle down economics and increased spending as part of his plan to cut New Deal and Great Society programs he loathed.

Back in 1981 David Stockman was the wonderkid of the Reagan administration–the director of the Office of Management and Budget who’d craft in actual budgets the trickle-down miracle Reagan had promised on the campaign trail: lower budgets, lower spending, higher tax revenue. But trickle-down economics was a wish, not a reality. It’s never worked. Lower taxes don’t generate more revenue. They generate deficits.

Reagan knew it. So did Stockman. So did their guru, Friederich von Hayek. The deficits were intentional all along. They were edsigned to “starve the beast,” meaning intentionally cut revenue as a way of pressuring Congress to cut the New Deal programs Reagan wanted to demolish. “The plan,” Stockman told Sen. Daniel Patrick Moynihan at the time, ” was to have a strategic deficit that would give you an argument for cutting back the programs that weren’t desired. It got out of hand.”

Reagan mission was the same as Grover Norquist's drown government in a bathtub quote. Reagan and Norquist didn't really believe tax cuts would magically create surpluses. The new generation of Tea Party Republicans coming up learned economics from talk radio, Republican stump speeches and the National Review. The new breed of Republican candidates are so economically stupid that they actually believe the big lie that is trickle down economics. Toomey has a background in banking. Toomey isn't stupid about economic policy. He is just as cynical as Reagan and Norquist.

Conservative Reaction to Specter

The Corner have longtime bashed Arlen Specter. Michael Rubin was angered by Specter's advocacy of diplomacy with Iran.

If ever the Republicans had a Jimmy Carter, Arlen Specter is it.

Kathryn Jean Lopez did muchraking reporting by using her anonymous wealthy friend as a source. K-Lo's thesis was Specter's vote for the stimulus package would help Pat Toomey's campaign contributions. The Corner repeatedly hammered Specter's postion on abortion. The Corner has repeatedly stressed for Specter's exit and less government. With Specter, Democrats have 60 seats once Al Franken is seated. The Corner is not happy about Republicans having less government.

I read that he was switching parties, but I was disappointed to learn he's still a Democrat.

The DINO remark is funny. Did the Cornerites expect Specter to join Bernie Sander's Vermont Progressive Party? Seriously.

In related news: RNC chairman Michael Steele told CNN he did not know Specter was going to defect.

Steele: Cornyn went out on the line for this man. For the senator to flip the bird back to Senator Cornyn and the Republican Senate Leadership, a team that stood by him, who went to the bat for him in 2004, to save his hide is not only disrespectful but down right rude. I'm sure his mama didn't raise him this way.


Q: Did he give you a heads up on this?

Steele: No, not at all. Which is another form of this respect that I don't count. At least give me a call or give the party leadership a call and let us know this is what I'm thinking. This is where I'm going so you can be prepared. I'm not one to be caught flat-footed about these things.

Oh really! Steele explains to CNN that he didn't know Specter's plans and then declares he doesn't get flat-footed. Steele is a comedy quote machine.

Steele declares, "Get ready to go to the mat, baby, because we're coming after you and taking you out." Will Steele be RNC chair in 2010?

Michelle Malkin goes nuclear. Specter is finally leaving the GOP and she is pissed? Malkin hates Specter. Yet Malkin is pissed. This is a seriously conflicted conservative blogger?

I am not a Specter fan. I agree that Specter's motivation is political survival. Republicans have bashed Specter for years and and are shocked he joined the opposition. Democrats went through this with Joe Lieberman. The base backed Ned Lamont and ended up stuck with Lieberman in the caucas. Republicans don't have a backup plan. Specter isn't likely to rejoin the GOP. Obama will campaign and raise money for Specter in the general election. Conservative principles don't mean much if you can't govern.

Your Candidate's More Liberal! No, Your's Is!

Tony Perkins of the Family Research Council supports Mike Huckabee. Club For Growth's Pat Toomey is backing Rudy Giuliani. They proceed to tell Chris Matthews that the other guy's candidate is a liberal. Hilarity ensues.