reagan spent his way out of recession

   Under carter, interest rates were as high as 21 percent. The purpose was to beat back inflation, but the economy suffered tremendously. When reagan took over, interest rates were dropped to the single digits. The national debt exploded from 900 billion to over 2 trillion. But the economy recovered as a result of increasing debt and spending.

Reagan's tax policies pushed both the international transactions current account and the federal budget into deficit and led to a significant increase in public debt. National debt more than tripled from 900 billion dollars to 2.8 trillion dollars during Reagan's tenure. 

  

  Raising taxes adds no benefit to the economy. Its like designing an aircraft with engines facing the other way. If the economy grows while taxes are being raised, it had nothing to do with the taxes. It was because public and private spending exceeded taxation. Which is why government spending always exceeds government tax revenue. Spending acts as the turbofan engines that propels the plane. Taxation acts like turbofan engines facing the other direction. The only reason tax and spend would ever work is because spending exceeds taxes.