Rich Lowery at National Review Online has published an intriguing analysis of George Bush’s economic accomplishments with tax reductions, increased spending and overall reduction of the deficit as a percentage of GDP.

Lowery points out how according to Brian Riedl of the Heritage Foundation, if annual spending increases in the Bush years had been limited to the rate of the Clinton years, roughly 3.3 percent, there would be a federal surplus now. Instead, spending has been growing at 8 percent a year. That demonstrates that the formula for deficit reduction from the 1990s—moderate-spending restraint coupled with higher-than-expected growth-generated revenues—would work again today, if only someone could manage the moderate-spending restraint.

Can anyone say “Laffer curve?”

A US News article recalls the legendary moment in 1974 when economist Arthur Laffer supposedly traced the Laffer Curve on a napkin at the Two Continents Restaurant in Washington, D.C. at a dinner attended by Donald Rumsfeld and Dick Cheney. Some time later, he sketched it for Ronald Reagan.

“It was a doodle,” said Laffer, in an interview with US News writer Paul Lim. Known to many as the father of supply-side economics, or as former President Bush once called it, voodoo economics. 

“The drawing in question was a graph that illustrated a theory now widely embraced by conservatives: If tax rates are lowered, tax revenues can actually grow as economic activity is spurred. Laffer’s igloo shaped curve illustrated how at either 0 or 100%, tax revenues will be 0 as increasing taxes serve as a disincentive to producivity.

In any case, Laffer and Reagan were eventually proved correct, Bush senior was proved wrong, and Bush junior in the company of Dick Cheney are producing positive results in keeping with their promise of overall deficit reductions.  Now if they could only slow down the spending…