Lever Time Tax Revolt: Voodoo Economics
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May 2, 2025 Nicole Hemmer, an Associate Professor of History at Vanderbilt and author of 'Partisans,' joins to unravel the depths of supply-side economics and its impact on American politics. She discusses how George H.W. Bush’s unexpected tax hike shaped his presidency and the Republican Party’s future. The conversation dives into the rise of anti-tax pledges and the ideological split within the GOP, led by figures like Newt Gingrich. Hemmer illustrates how these political maneuvers set the stage for modern populism and economic policies that resonate today.
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Bush Breaks "No New Taxes" Pledge
- In 1990, Bush famously broke his "read my lips, no new taxes" pledge by agreeing to tax increases as part of a budget deal.
- This decision led to backlash from conservatives and damaged his political standing.
Reagan's Debt Haunts Bush
- The national debt left by Reagan was unprecedented, making it extremely difficult for Bush to balance the budget.
- Congressional gridlock and sequestration laws limited options, forcing Bush to compromise.
Gingrich's Revolt and Shutdown
- Newt Gingrich led a revolt against Bush's 1990 budget agreement, worsening party divisions.
- The government shutdown that followed marked a significant political crisis and weakened Bush's presidency.