"Milton Friedman, let me turn to you, are you suggesting, on the contrary, that these tax cuts will lead to capital formation, investment, and therefore, economic growth?"His response, after noting that he is a libertarian, was:
"Yes I am, indeed and well."This was eight years ago. Time to take stock and see what happened. Average rate of real GDP growth from 2001 to 2010 was 1.68 percent. Below the historical average, even if you eliminated the crisis, in which case it would be 2.08 percent. And let's not forget that the tax cuts are to a great extent, besides the crisis and the two wars, the cause of higher deficits and debt. Was he wrong? Yes, indeed and well.