Ail said:
Isn't Romney whole economical plan to cut taxes to rich so that they can invest more into the economy and create more jobs ? Well it looks to me like QE does the same thing in a different way :P ( it doesn't cut taxes but it increase their income so in the end the result is the same) Now if you argue that does little for jobs, I don't see why the tax cutting thing would work any differently.. Not thatI, personally have any position on QE, I have benefited from it so I am not going to complain too much about it... |
Personally I don't think tax cuts will help... but taht's me.
It does work differently however... hence why it's an inefficent top down approach.
QE raises the overall market, making everything your already invested in worth more. Which you may cash in. Or may just let sit... since the big wave already happened. Additionally it discourages startups since the big wave has already hit. Startups being the most important part of fixing the economy.
While taxcuts for the rich only give you money on realized invesmenets you cash in... then you reinvest said money... or spend it either helps.
QE practically works as an incentive to let money sit in high end stocks.