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New York Times: Do Tax Cuts Lead to Economic Growth?

Author: David Leonhardt
September 15, 2012


Mitt Romney's proposed tax cut plan of stimulating growth is called into question when analyzed mathematically and juxtaposed against historical precedent.

FOR one of my occasional conversations with Representative Paul D. Ryan over the last few years, I brought a chart. The chart showed economic growth in the United States in the last several decades, and I handed Mr. Ryan a copy as we sat down in his Capitol Hill office. A self-professed economics wonk, he immediately laughed, in what seemed an appropriate mix of appreciation and teasing.

One of the first things you notice in the chart is that the American economy was not especially healthy even before the financial crisis began in late 2007. By 2007, remarkably, the economy was already on pace for its slowest decade of growth since World War II. The mediocre economic growth, in turn, brought mediocre job and income growth — and the crisis more than erased those gains.

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