Need and Demand: Perhaps nothing demonstrates the contrast between need and demand better than a comparison between raising taxes and reducing taxes.
Premise: Measuring the following three years after the implementation year of both federal tax hikes and tax cuts since the 1950s illustrates that every major tax cut produced more subsequent government revenue than did every major tax increase.
Conundrum: Creeplenomics insists that tax cuts cause budget deficits and tax hikes decrease budget deficits. However, every one of the six major tax cuts since the 1950s produced more government revenue than did any of the three major tax hikes during that same time period (including Bill Clinton’s disingenuously heralded tax increase). We also saw in The Paranoid Quiz that the freeplenomics tax cuts of the 1920s contributed to reducing the national debt along with creating a roaring economy, whereas the creeplenomics tax hikes of the 1930s correlated with increasing the national debt and pushing the country into a prolonged malaise.
[Creeple will scoff, but that won’t change the numbers.]
Explanation: Freedom always produces more prosperity. Tax cuts equal more freedom. Tax hikes equal more slavery to the government. By leaving more money in the marketplace with tax cuts, that money is used by consumers to generate more money through investment and marketplace interaction. The result is an increase in overall income and subsequently, more government revenue – true stimulation (demand). Once again history illustrates that creeplenomic claims amount to nothing more than paranoid propaganda to get you to agree to voluntarily demand enslavement of yourself and everyone to big-mommy government through more taxes.
Conclusion: Tax cuts are good for the economy and the government.
Freeplenomics and Creeplenomics: Creeplenomics tax hikes increase need and reduce demand by removing money from the private sector, whereas freeplenomics tax cuts increase demand and reduce need by leaving more money in the hands of the private sector. Tax decreases produce more prosperity, whereas tax increases reduce prosperity.