[usconservative]

tepping forward from Laffer's utopic economic era, why did the economy post noticeable growth after tax increases were implemented in 1993?

Two words: WELFARE REFORM. The biggest cuts in Government Spending in the last 50 years occurred because of WELFARE REFORM, this has been well documented.

This is what happens when you ask someone who barely speaks f'ing english (Asha Bangalore) to analyze the American economy and our economic models. This guy's a moron.

[griswold3]

We have a winner!
Welfare reform was an important signal to the producers. It said DC was serious about controling spending.
The tax increase (meant to decrease the deficit) was the trade off. Though you didn’t feel as if you (producer) were in the cross hairs like now.

[denydenydeny]

why did the economy post noticeable growth after tax increases were implemented in 1993?

Also, the Republican takeover of Congress in 1994 had a tremendous positive effect on the economy. In January and February 1995 the stock market just explodes.

[LS]

Well, that's a very, very minor part of it. There were three macro events that caused the U.S. economy to "re-boom" (still growing after Reagan's tax cuts) in the 1990s:

1) The largest single market in the world since 1945 was opened up to exports with the end of Communism;

2) Energy prices (thank you G. H. W. Bush) were kept remarkably low, filtering through to every aspect of production and manufacturing in the economy; and

3) The computer revolution came on-line and the productivity vs. cost charts went crazy.

Any ONE of those events would likely have "re-boomed" the economy. All three, combined with a GOP election in 1994 that told markets that spending would not accelerate, gave us almost six solid years of growth.