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Jude Thaddeus Wanniski (June 17, 1936, Pottsville, Pennsylvania – August 29, 2005, Morristown, New Jersey) was an American journalist, conservative commentator, and political economist. He is perhaps best known as the associate editor of The Wall Street Journal from 1972 to 1978. In 1976 Wanniski coined the term supply-side economics to distinguish the revival in classical economic thought from the more dominant "demand-side" Keynesian and monetarist theories.
The Two Santa Claus Theory is a political theory and strategy developed by Jude Wanniski in 1976, which he promoted within the U.S. Republican Party. The theory states that, in democratic elections, if one party appeals to voters by proposing more spending, then a competing party cannot gain broader appeal by proposing less spending.
The "Santa Claus" of the theory title refers to the political party that promises spending.
Instead, "Two Santa Claus Theory" recommends that the competing party must assume the role of a second Santa Claus by offering other appealing options. This theory is a response to the belief of monetarists, and especially Milton Friedman, that the government must be starved of revenue in order to control the growth of spending (since, in the view of the monetarists, spending cannot be reduced by elected bodies as the political pressure to spend is too great).
Wanniski explained in a memo in 1999, "We of course should be indebted to Art Laffer for all time for his Curve.... But as the primary political theoretician of the supply-side camp, I began arguing the 'Two Santa Claus Theory' in 1974. If the Democrats are going to play Santa Claus by promoting more spending, the Republicans can never beat them by promoting less spending. They have to promise tax cuts in order to grow the economy -- not to 'starve the government of revenue,' which is Milton Friedman's rationale."
The Republicans have proven themselves to be the party of hypocrites yet folks here still continue to turn the other side.
Its time for both conservatives and Liberals to rally their own third parties. We may not agree on ideology, but by the least we agree that both parties have failed us and its time for them to be voted out.
Originally posted by David9176
Have you heard of this theory or this man before?
Truth is while Reagan and his Republicans spent like heck while toutin' fiscal conservatism, Democrats held the house majority and needed to give support. Under Clinton both parties needed one another to get the bills through. Under the Bush administration the Republicans got some Democratic support for tax cuts, they got some Democratic support for their $1 trillion military increase over 8 years, the Dems helped pass a whopping $3 billion to aid for Israel.
I'm more familiar with his more recent work, where he opposed the war with Iraq up until his death. I hope it shows he had a change of heart later in life and maybe he was trying to make up for the errors of his youth.
I agree with you. At first, proposing an increase on the top one percent sounds "socialist", and people will point to the Laffer curve, which says that by lowering taxes, tax revenue will actually go up because income will go up for taxpayers. I think that we've passed the top of the curve. I'm not saying that we should go back to 70% rates, but tax cuts for the rich don't really do much after a certain point.