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Thursday, August 10, 2017

Trickle-down economics is a nightmare

Source


The Washington Post talks about the economic retreat of Kansas:

The Republican gospel of cutting taxes and government services to the bone doesn’t lead to economic growth; it leads to crisis and decline. Just ask the people of Kansas, who finally have seen the light. 
The states are supposed to be laboratories for testing government policy. For five years, Kansas’s Republican governor, Sam Brownback, conducted the nation’s most radical exercise in trickle-down economics — a “real-live experiment,” he called it. He and the GOP-controlled legislature slashed the state’s already-low tax rates, eliminated state income tax for most owner-operated businesses and sharply reduced vital government services. These measures were supposed to deliver “a shot of adrenaline into the heart of the Kansas economy,” Brownback said. 
It ended up being a shot of poison. Growth rates lagged behind those in neighboring states and the nation as a whole. Deficits mounted to unsustainable levels. Services withered. Brownback had set in motion a vicious cycle, not a virtuous one.

[There's more: read it here]

You might also find this post interesting: Lessons from history


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