Reaganomics and the National Debt

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How does a high debt benefit corporations and not the people?

I agree with Jmfcst that a debt can be tolerated in grave times. However, I think that in Reagan's case it wasn't completely justified the way it might have been in the 30s and 40s. I think George Bush had a point when he called Reaganomics voodo economics.

Reagans idea to bring down the Soviets was a stroke of genius. Simply outspend the Soviets and bluff them with SDI until their bank broke. And it did and the terrible scourge of another death regime ended.

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How does a high debt benefit corporations and not the people?

I agree with Jmfcst that a debt can be tolerated in grave times. However, I think that in Reagan's case it wasn't completely justified the way it might have been in the 30s and 40s. I think George Bush had a point when he called Reaganomics voodo economics.

Reagans idea to bring down the Soviets was a stroke of genius. Simply outspend the Soviets and bluff them with SDI until their bank broke. And it did and the terrible scourge of another death regime ended.

That is one issue, but that of his economic policies is another.

Tax Cuts work, plain and simple. They worked for Kennedy (where reagan got the idea) they worked for Reagan and they are working now. The best solution would be the total elimination of the IRS but thats for another topic.

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Gus,

The Reagan tax cuts worked.  They killed stagflation.  Inflation has not been a major issue here for the last 20 years, Reagan killed it.  We havben't had double digit unemployment here in 20 years, because he killed unemployment.  Same with interest rates.  Transitioning from a high tax economy (70%) to a low tax on (28% when he left office, peaking at 39.6% in the 1990s, down to 35% now) is what did it.

I wonder how much worse it would have gotten if Carter had won a second term.