The Two Santa Claus Theory is a political theory and strategy developed by Jude Wanniski in 1976, which he promoted within the U.S. Republican Party. –snip
The theory states that, in democratic elections, if one party appeals to voters by proposing more spending, then a competing party cannot gain broader appeal by proposing less spending. The “Santa Claus” of the theory title refers to the political party that promises spending. Instead, “Two Santa Claus Theory” recommends that the competing party must assume the role of a second Santa Claus by offering other appealing options.
This theory is a response to the belief of monetarists, and especially Milton Friedman, that the government must be starved of revenue in order to control the growth of spending (since, in the view of the monetarists, spending cannot be reduced by elected bodies as the political pressure to spend is too great). Monetarism is a set of views concerning the determination of national income and monetary economics. … Milton Friedman (born July 31, 1912) is a U.S. economist, known primarily for his work on macroeconomics and for his advocacy of laissez-faire capitalism. …
“Two Santa Claus Theory” does not argue against this belief, but holds that such arguments cannot be espoused in an effort to win democratic elections. In Wanniski’s view, the Laffer curve and supply-side economics provide an attractive alternative rationale for revenue reduction: that the economy will grow, not merely that the government will be starved of revenue. Wanniski argued that Republicans must become the tax-cutting Santa Claus to the Democrats spending Santa Claus.
And the beat goes on….