Leaders | Truss’s rusty Reaganism

Liz Truss’s selective Reaganomics won’t work

After cutting taxes, the Gipper reversed course

In july 1981 President Ronald Reagan took to the airwaves promising to “reduce the enormous burden of federal taxation on you and your family”. Inflation was much too high and tight monetary policy had taken interest rates to over 19%—problems Reagan attributed in part to rising government debt. But the president brushed aside the contradiction and argued that tax cuts and deregulation would unleash productivity growth. By August he had signed into law America’s biggest tax cut since the first world war, worth nearly 3% of annual gdp.

This article appeared in the Leaders section of the print edition under the headline “Truss’s rusty Reaganomics”

Should Europe worry?

From the September 24th 2022 edition

Discover stories from this section and more in the list of contents

Explore the edition

Discover more

How to make a success of peace talks with Vladimir Putin

The key is robust security guarantees for Ukrainians

Black and white photograph of Javier Milei

Javier Milei: “My contempt for the state is infinite”

Argentina’s president is idolised by the Trumpian right. They should get to know him better



Peace in Lebanon is just a start

Donald Trump must build on Joe Biden’s belated success

From Nixon to China, to Trump to Tehran

Iran is weak. For America’s next president that creates an opportunity

Too many master’s courses are expensive and flaky

Governments should help postgraduates get a better deal