trickle downto the rest of the population. The theory gained popularity during the late 1970s, with a tax revolt in California and economic hardship during the Carter administration (1977–81). Arthur Laffer and his
Laffer curvedoctrine became the heart of the economic programs of Ronald Reagan's presidency, during which tax rates were cut substantially. Although supply siders maintain that the tax cuts of the 1980s were responsible for the decade's economic growth, critics argue that such policies caused massive federal deficits, penalized the poor and middle class, and induced excessive speculation that severely damaged America's economy. The subsequent tax increases under Presidents George H. W. Bush and Bill Clinton and the concurrent corporate investment, economic growth, and drop in unemployment during the 1990s further undercut supply-side suppositions.
See V. Canto, Foundations of Supply-Side Economics (1983); R. L. Bartley, The Seven Fat Years (1992).
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