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Republicans see the growth in the 1980s and the late 1990s growth after capital gains rate cuts as proof that people are more willing to save, work and invest if they can keep more of what they earn.
“When the pie is as large as possible, then you have the least questions about the distribution of that pie,” said Donald Luskin, chief investment officer at Trend Macrolytics. “We’re not having a serious economically driven conversation about this. We’re just having a populist appeal.”