CNN’s global economic analyst and TIME Magazine editor Rana Foroohar pointed out the GOP’s “trickle down” approach to the economy is outdated and doesn’t work, according to a segment posted by Media Matters.
Foroohar mentioned that the economy has changed vis-a-vis technology replacing some jobs and globalization sending some overseas. But even if that weren’t the case, Foroohar pointed out the strategy of cutting taxes and expecting growth is bogus.
“Well, basically, none of these tax policies, with the exception of Rand Paul’s if you use some pretty crazy expectations about growth, will actually cut the deficit,” she pointed out. “And that’s a big deal because Republicans are claiming that if we cut taxes and lower the deficit, that’s the formula for growth. There’s also no real evidence that cutting taxes in the last two decades or so has increased growth.”
She then said raising taxes, as happened in 1993 under Bill Clinton, is actually what resulted in growth.
“Under a Republican administration in 2001, 2003, we cut them, we got meager growth,” she said. “So I think that that formula, that sort of old-fashioned Republican formula, trickle-down formula of cut taxes, cut red tape, you get growth, isn’t quite working.”
Watch the segment, as posted by Media Matters, here: