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Reaganomics
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Will Reaganomics or supply-side economics ever be applied in Belgium? In the UK, Ireland, Iceland and Eastern Europe current economic policy has strong supply-side influences. Currently Germany is in a worse socio-economic situation than Belgium. Who knows, some day Germany might return to the successful formula of Ludwig Erhard and create a new Wirtschaftswunder, by applying supply-side economics. Such an example could show the way for Belgium and other countries.
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Having set up Reaganomics as the straw dog, Clinton was then able to argue, once elected, that he had a mandate to change course from the path of Reaganomics. Bush would still be president if he had stuck with Regan's economic policies.
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In a similar vein, it is only when the sacrificial, "purging" nature of Reaganomics is taken into account that what seemed to be its conflicting parts can be viewed as a coherent whole. It has often been demonstrated that the two parts of Reaganomics-monetarism and "supply side" tax cuts - don't make sense hitched together. Economist James Tobin states the case clearly:
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The impressionist Rich Little recorded the 1980s comedy skit "Reaganomics", in which he, as reporter David Brinkley, interviews Ronald Reagan about his economic policy. The President proceeds to deliver a convoluted explanation, which at the end prompts Brinkley to exclaim, 'Mr. President, that would be a mess!' Reagan responds, 'That's right!'
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"Looking back, it seems clear that, on balance, "Reaganomics" was a success," Weidenbaum concludes. "Overall, the benefits outweighed the costs. Warts and all, the Reagan presidency was a high watermark for the American economy."
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