Subject: txt mny hstry -
In the nine quarter-century periods since the American republic was founded in 1789, the one with highest economic growth and job creation was the period from 1983 through 2007. Particularly remarkable -- there were just four quarters (out of 100) of negative economic growth in that entire interval:
- That period of time was characterized by a reduction in government spending from 23.5 percent of gross domestic product (GDP) to 20 percent (the low point was 18.4 percent in 2000), and a reduction in marginal tax rates.
- Despite the reduction in tax rates, tax revenues both in absolute terms and as a percentage of GDP grew in the 1983-2007 period because of the improved work and investment incentives.
- As a result, the deficit fell from 6 percent of GDP in 1983 to just 1.2 percent in 2007.
Most people understand that if the government is growing faster than the economy (as it has been for the past two years) disaster ultimately will occur, but if the economy and the private sector grow faster than the government, as they did from 1983-2007, the country prospers...
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