Sunday, February 6, 2011


I have described the six decades of the post-WWII era as 30 years of Keynesian economics followed by 30 years of Reaganomics. But I think that's wrong. I think "Reaganomics" is the wrong name. I think the right name is "Wanniski-nomics"

From mine of 18 January:

Our so-called "golden age" -- 1947 to 1973 -- occupies the post-war uptrend shown on the graph. But by the last years shown, you can see the uptrend tapering off just as it did during the Depression. We squeezed out only a few more good years before that golden age ended.

After that, economic growth wasn't so good anymore. That's when the Laffer Curve, the Two-Santa-Claus Theory, and Supply-side economics, and Reaganomics arose, and lots of other trendlines started changing.

1974: The Laffer Curve

The term "Laffer curve" was reportedly coined by Jude Wanniski (a writer for The Wall Street Journal) after a 1974 afternoon meeting between Laffer, Wanniski, Dick Cheney, Donald Rumsfeld, and his deputy press secretary Grace-Marie Arnett.

1976: The Two Santa Claus Theory

The Two Santa Claus Theory is a political theory and strategy published by Wanniski in 1976, which he promoted within the U.S. Republican Party.

The theory states that, in democratic elections, if one party appeals to voters by proposing more spending, then a competing party cannot gain broader appeal by proposing less spending.

1978: Supply-side Economics

In 1978, Jude Wanniski published The Way the World Works, in which he laid out the central thesis of supply-side economics...

1980: Reaganomics

Reagan himself claimed to be influenced by "classical economists" such as Frédéric Bastiat, Ludwig von Mises, Friedrich Hayek, and Henry Hazlitt. Upon Reagan's death, a memo released by Jude Wanniski, economics advisor to Reagan during his 1980 campaign, highlights Reagan's firm grasp of economic concepts and his knack for conveying them so a layperson could understand.

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