i kinda like cutting taxes...after all isn't it considered a bad idea to make drastic changes when you are in a time of crisis? I was just wondering what everyone else thought.
Hoover cut taxes. Depression worsens. FAIL FDR provided stimulus dollars. WIN Bush cut taxes. Economy falls into crapper. FAIL Obama and other world leaders provide stimulus. Economy recovers quickly. WIN
The Revenue Act of 1929 wasdesigned to promote recovery. It marked a notable foray into fiscal activism, especially for a Republican administration. But the law's mechanism for promoting recovery was hardly Keynesian. Rather, it was rooted in traditional theories of public finance -- theories emphasizing the importance of balanced budgets and fiscal rectitude, not deliberate deficits and stimulatory spending. link
I'd take a bit of inflation and higher taxes to have a job. I'm pretty sure the job would more than pay off the new expenses.
Look at Germany and Japan, they spent huge amounts on stimulus packages, and they have already declared their recessions over. They are experiencing growth. They spent much more per capita than the US, and they are back to normal. Hmm... spending works!
I'd take a bit of inflation and higher taxes to have a job. I'm pretty sure the job would more than pay off the new expenses.
Why put money into a company that is failing and who's executive officers use about half of it on bonus pay? The company is essentially living off the stimulus. [url= http://www.foreignaffairs.com/articles/46262/hanns-w-maull/germany-and-japan-the-new-civilian-powers ]
Why put money into a company that is failing and who's executive officers use about half of it on bonus pay? The company is essentially living off the stimulus.
I don't support bonuses and executive packages. The stimulus plans like new construction jobs, keeping important companies afloat, and giving tax breaks to small business are the things I support.
Opening up public work places to create new jobs and restore consumer confidence....
Full employment is not the way to get out of a recession. I think the British governments of 64-79 proved that much.
The key is not to protect jobs, but to make it easier for employers to fire people. The easier jobs can be destroyed, the easier they can be created.
In answer to the OP, I seedirect tax cuts fairly useless, due to the paradox of thrift. Individuals will more often than not save the money they would gain from a tax break rather than spend it and stimulate the economy. Stimulus packages are the way to go.
