The Fed misinterpreted the excess reserves as a sign of too much liquidity in the banking system. One Fed mistake led to another. The end result was a dramatic reduction by 33 percent in the supply of money. Purchasing power, prices and employment all collapsed. The entire transformation of the U.S. constitutional order is due to the Federal Reserve's monetary mistake.
Progressives see tax cuts as atavistic policy, a throwback to the past.
The benefit to the economy of a tax rate reduction means little to people who believe that we need more government, not less. This is the reason liberals remain unmoved by arguments showing the efficacy of tax cuts. A tax cut may get the economy going, but it is the wrong kind of economy. For liberals, the right kind of economy is one in which government has the money to attend to people's old age retirement, health care, education, child care and welfare, and to regulate the work place, the medicines people take, the design and manufacture of the products they consume and, increasingly, their use of language. The argument for tax cuts is an argument for more individual responsibility.