I realize that we’re living in an age in which many citizens — including some of our elected leaders — simply cannot be troubled by the facts. That’s why a popular Republican fairy tale — tax cuts produce jobs and economic growth — continues to attract so many fervent believers.
It has been disproved over and over again, but it still continues to hold magical charms for many. But for those for whom facts still matter, The NYT’s David Leonhardt has a great blog post today:
Those tax cuts passed in 2001 amid big promises about what they would do for the economy. What followed? The decade with the slowest average annual growth since World War II. Amazingly, that statement is true even if you forget about the Great Recession and simply look at 2001-7.
The competition for slowest growth is not even close, either. Growth from 2001 to 2007 averaged 2.39 percent a year (and growth from 2001 through the third quarter of 2010 averaged 1.66 percent). The decade with the