> Reagan's notion that increasing the margins of the wealthy would induce them to pass profits to workers was mistaken in that its proposed mechanism was entire

> Reagan's notion that increasing the margins of the wealthy would induce them to pass profits to workers was mistaken in that its proposed mechanism was entirely altruism. No it wasn't. Reagan push to lower taxes so rich people money would be used in investment instead of sitting idle. The notion that money in investment has a higher velocity than money sitting is basic economics. The main issue with Reagan is that his prediction that the increased velocity of money would produce enough economic activity to make up for the reduction in taxes - was totally incorrect. It's really disappointing how many commenters criticize Reagan's economic policies without understanding them at all.