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”
Discover more
How to make a success of peace talks with Vladimir Putin
The key is robust security guarantees for Ukrainians
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
Donald Trump’s threats of tariffs will do harm, even if he does not impose them
The risk of a trade war is uncomfortably high
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