Back in 1980 before Reagan won his first presidential election, he and George Bush were debating their plans to spur the economy. Basically Reagan’s plan of cutting 30% of the income tax over three years was more drastic than Bush’s plan and Bush was accusing him of cutting revenues and creating larger deficits. Reagan suggested that Bush’s plan didn’t go far enough. I’ve included some of this just to set the stage for the good part.
Now that good part comes at the end of the clip, to the delight of the crowd, when Reagan gets out of the weeds and breaks down his argument to something more simple, even moral, that resonated with the crowd:
I’ve heard for a great many years that we can’t possibly reduce taxes – this is Washington’s cry – we can’t reduce taxes until we reduce government spending. And I have to point out that government does not tax to get the money it needs, government always needs the money it gets.
Now your son can be extravagant with his allowance and you can lecture him day after day about saving money and not being extravagant. Or you can solve the problem by cutting his allowance.