Not Sure I’d Let This “Economist” Cook for Me

Mark Thoma emails me a gift calling Economics For Dummies the “economics of a dummy”. Ralph R. Reiland (the 3 R’s) says he is an associate professor of economics at Robert Morris University and a local restaurateur. I have no clue what the quality of instruction is at Robert Morris University but I sure hope the cooks at his restaurant are better at the culinary arts than Mr. Reiland is at understanding macroeconomics. He confused the aggregate demand effects of the 1964 tax cut supported by easy monetary policy with the supply-side insanity of Jude Wanniski and Arthur Laffer. He also wrote this old chestnut:

Additionally, inflation fell from double digits in 1980 to 1.9 percent in 1986, federal revenues increased by nearly half a trillion dollars over their 1980 levels by the end of Reagan's second term, the federal budget deficit fell from 6.3 percent of GDP in 1983 to 2.9 percent in 1989, and unemployment dropped from 7.1 percent in 1980 to 5.3 percent in 1989.

I would hope his students know that part of the reason inflation fell was that massive 1982 recession brought on by the Federal Reserve’s zeal to offset the aggregate demand effects from the 1981 tax cut. I would also hope his students are aware that real per capita Federal income taxes were barely higher in 1992 than they were in 1980. Can I suggest to Robert Morris that they not let such foolish ideas come before their students?