Quote:
Originally posted by Dagnabit
But for all the possible money games out there, a tax cut is the most interesting. It doesn't mean we have more money -- if *everyone* has more money then the value of money is lowered. It just means that the public is deciding how a larger portion of money is spent, rather than the government.
Since the public is more likely to spend money on items that will result in an increase in productivity, that's where the growth comes.
So I guess the real question is: is the public's more intelligent spending a bigger gain than the debt that would be paid off from that money?
Weird economics.
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A tax cut means "we have more money" AND "the value of money is lowered". A tax cut only works, as claimed, IF government spending is decreased by equal amounts. Instead, Bush is only increasing money supply by maintaining high government spending (no spending cuts) and by INCREASING spending on inflation generating activities such as defense WHILE maintaining high interest payments to rich creditors AND issuing trivial money amounts to the numerous, less wealthy people. IOW Bush wants to bring back inflation.
Tax cuts only work, as claimed, if the money comes from decreased government spending. Bush is not doing wholesale tax cuts. Instead he advocated increased government spending. That could even bring back Stagflation!!
Apparantly Dagnabit does not understand what a tax cut does or carefully learn from what was posted previously. He does what politicans do - ignore the lessons of innovative and advocate money games. Tax cuts do not create more spending "on items that will result in an increase in productivity". Voodoo Economics: by now, every human should have understood those nonsense economics don't work - as demonstrated by history AND as detailed in my above posts.
IOW to even 'think' that a tax cut contributes to a productive economy is to 1) ignore everything I have posted above, 2) ignore the disaster called Reaganomics, and 3) to blindly march, like a leming, to discredited concepts of neo-classical economics.
Scary is that some still preach these failed concepts meaning, unfortunately, George Jr's economic lies are still worshipped - despite the facts. Yes, America does have many who never learned from history. Even FDR's pre WWII economic spending - the New Deal - could not solve a recession. JFK's tax cuts only resulted in recession during Johnson's administration. And yet some still think Voodoo economics works. Go figure. What do they teach in schools these days?
This is the part that extremist, anti-American Republicans will always avoid - the math.
A private investment typically results in only about 1/2 return compared to interest payments on government debt. Voodoo economics falsely claims that private investors create MORE return than the government debt payments. To do that, the private Return on Investment has to be so great that the taxes on that ROI pay the interest on goverment debt. IOW if government debt is 7% and taxes on capital profits is 30%, then private investors and public spending of their tax refunds must earn something exceeding 25% per year! Voodoo economics. IOW that 30% tax must pay the 7% interest. Numbers - blunt and simple - demonstrate that a tax cut concept only works when we forget all mathematics.
No respectible economist - even neo-classical economist - believe Voodoo economics. Dagnabit makes claims that even supply side economists discredit. George Jr is only mortgaging the economy's future. The only 'weird economics' is why people believe failed concepts and never do the math. Math? The younger generation cannot even make change without a calculator? Maybe that explains why so many believe a lying politican and his Tax Cut.