However, Jim Rickards explains why big Reaganesque tax cuts are no longer a viable policy option for the US -- the debt to GDP ratio was only 30% when Reagan embarked on his tax cut plan, compared to 105% now. In 8 years, Reagan ran the GDP ratio up from 30% to 50%, but doing something like that today would trigger a dollar crisis.
Rickards also points out the other big difference today is that interest rates are already close to zero, compared to 20% when Reagan took office. So you can't boost the economy by lowering rates.
Reagan was able to have big tax cuts and big deficit spending, but that isn't possible today (for long) without a critical loss of confidence in the dollar as the world's reserve currency.
