Economy

It Came After A Tax Increase

Tim Pawlenty's vision for the Republican Path to Poverty achieves some of it's fantastical feats by assuming an economic growth rate of 5% for 10 years straight. An inconceivable period of prosperity which would be magically set into motion by his firesale of tax cuts.

As Chris Wallace -- of Fox News -- pointed out today on Fox News Sunday, it isn't realistic to expect that kind of consecutive growth, and the only instances of achieving 5% growth on record followed tax increases!

PAWLENTY: We have achieved 5 percent growth twice in the recent history of this country. Once under Reagan, once under Clinton. Now was it sustained for 10 years in those circumstances? [...]

WALLACE: But governor, is it declinist to doubt the 5 percent number or is it just a realist to doubt the 5 percent number? You talk about the fact that for a few years in the 80s and a few years in the 90s that we did have average 5 percent growth – or close to it, it was 4 point something. But the fact is, the difference is, in both of those occasions that was coming directly out of a recession, not after a year, a year into a weak recovery. And actually, in both of those cases, it came after a tax increase, not a tax cut.

It's not as though the Republicans will let actual history get in the way while drafting the mythical documents they call a budget proposal, but I do appreciate someone calling out this kind of abject fantasy.

Question: Why does it seems like Wallace asks tougher questions these days than Gregory, Amanpour, and Stephanopoulos?