Reagan Budget Director David Stockman: I Am Shocked That Republicans Are Backing This Keynesian Tax Deal

Not too surprising here that David Stockman is coming out against the Obama tax plan, since he split with former boss Ronald Reagan over tax cuts to the rich.

But he makes an important point in this interview with the WSJ. Tax cuts are part of a supply-side economic model, but deficit-financed tax cuts are not: “There’s no free lunch, and we’re kidding ourselves if we think we can borrow more money in order to have a short term stimulus. This is straight out of Keynes, and i’m shocked that Republicans think it is good policy.”

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.