[lbo-talk] California Collapsing: What Would Reagan Do

[Michael Perelman]

I sort of agree with you.  Conservatives opposed spending on the grounds of 
balancing the budget.  Achieving a balanced budget was not a high priority 
for most people, so they switched with Kemp.

On Sun, Nov 22, 2009 at 03:31:51AM -0500, SA wrote:
>
> This was actually orthodox right-wing doctrine at the time. It was  
> considered "liberal" to resist tax increases in the face of deficits and  
> "conservative" to accept their necessity. That only changed in 1978-80  
> with the emergence of Laffer-type rationales for tax cuts. In the 1976  
> campaign, Jude Wanniski had tried to convince the Reagan team to embrace  
> Jack Kemp's supply-side tax cut proposals, but they were rejected on  
> "fiscal responsibility" grounds. Obviously that stance was reversed over  
> the next four years, which proved to be a major reason for conservative  
> electoral success.
>

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com