“Dissecting The Demagoguery About ‘Tax Cuts For The Rich'”

Thomas Sowell eviscerates one of the Left’s most cherished fables.

“Trickle down” is not an economic theory.

No such theory has been found in even the most voluminous and learned histories of economic theories, including J.A. Schumpeter’s monumental 1,260-page “History of Economic Analysis.” Yet this nonexistent theory has become the object of denunciations from the pages of the New York Times and the Washington Post to the political arena, and has been repeated as far away as India.

It is a classic example of arguing against a caricature instead of confronting the argument actually made.

While arguments for cuts in high tax rates have often been made by free-market economists or conservatives in the American sense, such arguments have also sometimes been made by people who were neither, including John Maynard Keynes and President John F. Kennedy, who in fact got tax rates cut during his administration.

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

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