Ted Nugent, amateur economist

In an op-ed written for the Washington Times musician Ted Nugent channels his inner economist to come up with this nugget:

The American people know intrinsically that tax cuts lead to prosperity

Yep, tax cuts lead to prosperity, just like those George W. Bush tax cuts (one of the largest tax cuts in the history of our nation) led to an unprecedented period of prosp…oh wait, those Bush-era tax cuts didn’t lead to prosperity, did they?

Ted Nugent should stick to his day job, because he’s a crappy economist.

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6 thoughts on “Ted Nugent, amateur economist

  1. Ted Nugent should stick to his day job, because he’s a crappy economist.

    So is Krugman but at least sweaty uncle teddy is entertaining. 🙂

  2. Wait, wasn’t the Nuge’s most successful time in the 1970s, when the top tax rate was 70% (Damn Yankees years excluded, of course)? According to Ted, he should never have been breaking through with “Stranglehold” and “Cat Scratch Fever” because the taxes were too high. What gives?

  3. “tax cuts lead to prosperity, just like those George W. Bush tax cuts”

    Let’s actually take a look at the effect before we rush to conclusions.

    As you know, the Bush tax cuts occurred in 2003. Prior to to the 2003 tax cuts GDP grew at 1.7% but GDP grew at 4.1%

    In the six months prior to the 2003 tax cut the economy lost 267,000 after the tax cuts it gained 307,000 jobs in the first six quarters and another 5 Million jobs in the subsequent 7 quarters.

    The S&P 500 increased 32 percent in the first 6 quarters following the tax cuts.

    So objectively, the tax cuts did lead to prosperity.

    Still, it is a fair question to ask, at what costs? In otherwords, did the tax cuts force deficit and reductions in revenue.

    Following the cuts, tax revenue was 18.4% of GDP which is above the historic average of tax revenue. For comparision, tax revenues were 18.5% in 1995 and 18.4% of gdp in 1987.

    Also, the revenue collected from the capital gains tax actually increased as a result of the tax cuts. The treasurey recieved incrased from $50 billion in 2003 to $103 billion in 2006. Before the tax cuts the CBO projected that capital gains tax revenue would be $68 billion.

    The numbers speak for themselves, the tax cuts increased revenue and increased growth.

  4. Actually, Ted is right. At least he’s not a “crappy” comedian in the Senate.

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