If you listen politicians, pundits and talking heads, you’d think the greatest thing we can do to jump-start the economy is to cut taxes. But if you actually take a minute and look at the data, you’ll see that is simply not the case.
New York Times Economix Blogger David Leonhardt broke down the growth stats, and guess what, the Bush tax cuts did nothing to stimulate growth. In fact, when Bush was president, economic growth was virtually non-existent.
“Those tax cuts,” Leonhardt said, “passed in 2001 amid big promises about what they would do for the economy. What followed? The decade with the slowest average annual growth since World War II. Amazingly, that statement is true even if you forget about the Great Recession and simply look at 2001-7.”
Were the Bush Tax Cuts Good for Growth?. David Leonhardt. November 18, 2010.