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Reaganomics: Making Gains

Reaganomics: Making Gains
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Leaves Fall, But Not Jobs

Lessons on How NOT to Stimulate the Economy

Although Congress is split over whether the stimulus package shouldbe comprised of tax cuts or spending increases or some combinationof both, lessons derived from such past efforts at home and abroaddemonstrate that strategies relying on increased spending willfail. Indeed, such lessons also suggest that such strategies makethings worse by diverting scarce resources away from productive usein the private sector.

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