| akuma587 said: Cutting taxes isn't that effective as a stimulus compared to other options. The multiplier effect of how many times those dollars will be re-spent is much lower than if the government spends that money on something. If you cut taxes in times like these, people often save the money or just pay down their debt, which is not the kind of thing that stimulates the economy. Some people think tax cuts are like voodoo magic and can do anything. I've never really understood why. |
Could it be that people saving some of that tax cut money would have been a good thing right about now? After all, the reason so many defaulted is they didn't have the money.
Given the massive amount of average debt each US citizen is in, we don't need to artificially grow jobs, we need to allow people to invest their own money in getting out of debt. Eventually, the money would go back into the 'system'.
It's funny, you argue that cutting taxes isn't a good stimulus, yet you can look at Ireland's choice to reduce their corporate taxes to one of the lowest levels in the developed world as being a critical factor in it's prosperity. Many other Eastern European countries are following suit to follow the same model.
Back from the dead, I'm afraid.
