voodoo economics

1 definition found

voodoo economics - Collaborative International Dictionary of English v.0.48 :

  Voodoo economics \Voo"doo economics\, n. (Politics)
     an economic hypothesis, proposed by President Ronald Regan,
     that large cuts in tax rates would so stimulate the economy
     that the tax revenue on the increases in business and
     personal income would offset the anticipated tax revenue
     losses, so that such tax cuts would not increasing the
     federal budget deficit. Its believers do not consider the
     actual massive deficit increases subsequent to the 1982-83
     tax cut as being caused by the tax cut itself, but by other
     governmental policies. This hypothesis was graphically
     illustrated by the Laffer curve.
     [PJC]