So, I've been reading parts of the Regan Diaries and it seems the US was going through a recession during his presidency. Regan resisted advice to impose and raise new taxes when the economy was bad. Instead, he fought for tax cuts:
"The recession has worsened, throwing our earlier figures off. Now my team is pushing for a tax increase to help hold down the deficits. I'm being stubborn. I think our tax cuts will produce more revenue by stimulating the economy. I intend to wait and see some results" (57-58).
I was wondering what people's opinions were with our economy now. Which is a better idea in the time of an economic recession: raising/imposing new taxes or tax cuts? Why so? If cutting taxes is the better idea, then why did others in Regan's administration push so hard to impose new taxes?
Upon reading this, I wondered why one idea should be favored over the other because it seems like both raise money for the economy. What do other people think?
-Anna
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