Reply #39: Eggs do not bounce.

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Myth: Tax cuts spur economic growth.
http://www.huppi.com/kangaroo/L-taxgrowth.htm
There is no historical evidence that tax cuts spur economic growth. The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. During this period, the general tax rate climbed as well, but it reached a plateau in 1969, and growth slowed down five years later. Almost all rich nations have higher general taxes than the U.S., and they are growing faster as well. – Steve Kangas

Myth: A capital gains tax cut will spur the economy.
http://www.huppi.com/kangaroo/L-capgainsspur.htm
Summary

There is no historical evidence that cutting the capital gains tax spurs economic growth. Cuts have usually been followed by economic downturns and reductions in saving and investment. Increases have generally seen the opposite. The theoretical case against cutting capital gains is also strong; most serious economists acknowledge that even eliminating this tax completely will not increase productivity, and may even do significant economic harm. – Steve Kangas

And to follow these links, you will see the statistics he uses to back up his claim.

They can point to sluggish growth in GDP as to why unemployment is rising/not going down, but beyond that from what I have read most don't have a clue as to why it is taking so long. Most macro models say that with the kind of stimulus there has been (tax cuts and low interest rates) the economy should be going like a bat out of Hell. But it isn't.

If you assume an egg can bounce, then throw it into the ground expecting the egg to bounce, and it doesn’t bounce. Than you fundamental understanding of the egg must be flawed.

If you assume that tax cuts spur the economy, cut the taxes, and the economy continues to languish, than your understanding of economics must equally be flawed. Here I have shown you where Steve Kangas has shown that tax cuts have the opposite effect on the economy, and sun of a gun, Bush's tax cuts have resulted in an economy more in keeping with Kangas understanding that these models that you sight. What more evidence dose one need to show that you preach junk science, not economics.

Supply side economics is nothing more than a hog-pogo collection of self serving agendas, thinly concealed by an endlessly shifting sea of reasoning. Ragan cuts the taxes, and the economy languishes, Bush consults the think tanks and new convoluted reasoning is cooked up for the same cuts taxes, and again the economy goes into recession, combined with the economic burdens of the Gulf war, also mistakenly thinking that wars spur an economy. Bush II again shifts the sea of reason, to justify more of the same tax cuts, and by golly, the economy tanks once more. Are we seeing a trend here? How can you NOT see a trend here, is the question that I have for these "models." Sooner or later, you are going to have to concede the fact that tax cuts do not spur the economy, any more than eggs bounce. But one wonders how many of our nest eggs it will take?