Thursday, June 10, 2004

Larry Kudlow on Ronald Reagan & Reaganomics

Larry Kudlow on Ronald Reagan & Reaganomics on NRO Financial: "At bottom, what became known as Reaganomics was a new pro-growth policy mix of tax incentives at the margin and stable money. But there was more. The Californian launched a massive military buildup totaling about $1.5 trillion. He deregulated oil prices, proving the conventional wisdom wrong as energy became much cheaper. He launched U.S.-Canadian free trade. He was unyielding in his opposition to the air-traffic controllers� strike, firing thousands of these government workers and ending the anti-growth union stranglehold on private industry. He created individual retirement accounts and 401(k)s, giving birth to the investor class. He also slashed social spending by reducing domestic program levels (excluding Social Security and health care) by nearly $50 billion in 1981. That amount would come to about $90 billion today. "