Are Libertarians actually Nazis?
During his rise to power, Nazi dictator Adolph Hitler relied on the BIG LIE propaganda technique. Nazis believe that if they keep repeating a lie with a straight face, people will eventually accept it.
On April 25 FOX News's David Asman said that “Reagan doubled revenue” (supposedly as a result of Reagan's tax cut).
On April 21, FOX News's Steve Moore (now on CNN) said “Reagan doubled revenue.”
In October 2015, FOX News's Melissa Francis said “Reagan doubled revenue,” moments after she decried how stupid average people were since they couldn't do math.
Suppose that in 1980 you have $100, and in 1988 you have $200. Has your revenue doubled? The more significant and economically relevant question is, has the purchasing power of this money doubled? The answer depends on how much the value of the money has changed.
Suppose that from 1980 to 1988, there was no inflation. Then your purchasing power did double. Suppose now the inflation in this period was instead 100 percent. Then your purchasing power, i.e. the real value of the money, did not increase at all. Therefore, to compare an amount of money in 1988 to an amount of money in 1980, the change in the value of the money must be accounted for. This is done by inflation adjustment. Here is the tax revenue from 1980 from the CBO: $517.1 billion.
Here are the inflation numbers during the Reagan administration, from the Federal Reserve Bank of St. Louis (FRED): 10.31, 6.16, 3.21,4.31,3.56,1.85,3.74, and 4.01. Now use these inflation rates to convert the $517.1 billion in 1980 to 1988 dollars. One obtains $517.1 billion in 1980 dollars is equivalent to $742.1 billion in 1988 dollars. Revenue in 1988 was $909.2 billion, for a gain during the Reagan administration of $909.2/$742.1 or 22.5 percent. Not 100 percent.
Nobel-prize winning economist Paul Krugman adds the adjustment for population and comes up with an eight-year revenue gain by Reagan of 19 percent. Not 100 percent.
Libertarian Leonard Peikoff recounted in his book, “The Ominous Parallels,” that Nazi Herman Göring said, “If the Führer wishes it then 2x2=5.”
In 2017, 19 percent=100 percent. Appearing on FBN on April 25, former Reagan OMB director David Stockman said, “The idea that there was some extraordinary boom in the economy is not true, and the boom that we had for a few years was due to pure Keynesian deficit spending.”
Why don't the Libertarians trumpet the success of the Bush2 tax cut? Bush2 cut taxes by about $1.5 trillion, which was almost identical to the cumulative Social Security surplus from 2001-2008. That cash was taken out of the trust fund, handed to the richest people, and replaced with bonds. Ten to 30 years later these bonds are being paid off by taking cash from America's young people. The rich people got the money, and our young people are the supply-side of the cash. This is “supply-side economics.” The Bush2 tax cut doubled the public debt, destroyed 600,000 jobs, and increased revenue (inflation adjusted) by 0.035 percent in eight years. Clinton increased inflation-adjusted revenue by 51 percent, Obama by 15 percent (without population adjustment).
FOX News, the sock-puppet of the discredited Cato Institute, has become the Joseph Goebbels of the 21st century. Rush Limbaugh said on May 12, “You can turn a lie into the truth — and that is the objective of the media every day.” This is what FOX news attempts when it says “Reagan doubled revenue,” or “free trade creates prosperity.” Deliberate repeating of a lie is done to fool the public, and it is done every day by the Libertarians — or whatever they are.
Hank Achor is a resident of Fort Wayne.