Limbaugh, Hannity ignore '80's interest rate cuts in prescribing Reaganesque tax cuts to end recession
Research ››› ››› ANDREW WALZER, TOM ALLISON & LILY YAN
Sean Hannity and Rush Limbaugh have repeatedly claimed that President Reagan's tax cuts were responsible for ending the recession in the early 1980s, suggesting that tax cuts, and not government spending, would be the best solution to the end the current recession. However, several economists have stated that while fiscal policy had some impact during that period, "[l]ower interest rates after mid-1982 permitted the recovery to begin," according to a 1983 CBO report. By contrast, a reduction in the federal funds interest rate is not available to the Federal Reserve today because the current rate is essentially zero.