Matt Perman expounds on a WJS editorial and lays out good arguments why the proposed stimulus package will not work well. Instead, go for permanent tax cuts to help businesses and increase investments.
I'm in agreement with Matt. Part of our political challenge is the delay interval between enacting tax cuts and seeing results. One of the key principles of system dynamics is that cause and effect are not closely related in time and space.
Over the history of the 19th and 20th centuries we've done all kinds of government and economic experiments (check the histories of Great Britain, Japan, Argentina, France, Russia, and the US for prime examples. There is a body of results to look at for stimulus efforts and it is not pretty. Tax cuts have always worked.
It does no good to say, "Oh, but it's different now with X group in charge." Economic behaviors are derived from fundamental human tendencies -- irrespective of which government is leading or their political philosophy.
Those who argue that tax cuts do not help everyone proportionally have some merit to stand on. There is room for compassion-based approaches, including handouts and help-ups.
One final question: where do people get the idea that the US Federal government has an independent source of money than state governments or companies? I've heard people in Iowa say, "Well, if the Feds won't pay for that we would." Uhm...our taxes and fees are what the Fed uses...
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You can dig all you want, but there is no pony hiding under the Democrat's stimulus manure pile. There is no pony hiding in the stimulus "pile of manure"
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