Reaganomics
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"Reaganomics" includes the idea of tax cuts proposed and enacted by President Ronald Reagan. It usually refers to the idea of "trickle down theory" in which lowering taxes on capital gains and those with higher incomes will stimulate the economy, thereby improving the economic situation of everyone.
Reagan's own vice-president, George H. W. Bush, referred to Reaganomics as "voodoo economics."
Rothbard wrote:
- Specifically, Reagan called for a massive cut in government spending, an even more drastic cut in taxation (particularly the income tax), a balanced budget by 1984 (that wild-spender, Jimmy Carter you see, had raised the budget deficit to $74 billion a year, and this had to be eliminated), and a return to the gold standard, where money is supplied by the market rather than by government. In addition to a call for free markets domestically, Reagan affirmed his deep commitment to freedom of international trade. [1]