Quote:
Originally Posted by Ihealyou
[You must be logged in to view images. Log in or Register.]
despite Republicans screaming otherwise, government spending has a stimulative effect on the economy.
|
What does it stimulate? Genuine economic growth, or phony GDP/Job numbers? I'd argue the latter, based on Bush+Obama's escapades in stimulus. Both were heavy stimulus abusers.
No one can show or prove that the stimulus was a success. We're just expected to believe it worked. I've looked at the numbers - even the job creation/saved numbers the presidency provides puts the cost of each job at $200,000 or higher. Countries that didn't stimulate are recovering far faster than we are.
Quote:
Originally Posted by Ihealyou
[You must be logged in to view images. Log in or Register.]
Unfortunately, its easier to cut welfare, social services and other programs which actually help the economy than entitlements, which are the main drivers of our long term debt.
|
It's quite a bit harder politically to deal with entitlements - but people on both sides who have tried to deal with them get ostracized by their own parties and demagogued by the opposition.
And there are a myriad of entitlements or government promises that are coming down the pike that no one even talks about - Veteran benefits for the tons of soldiers that aren't re-enlisting or have been wounded around the world, student loans, etc.
Quote:
Originally Posted by Ihealyou
[You must be logged in to view images. Log in or Register.]
(Not extending the Bush tax cuts would have avoided this problem all together, but don't tell anyone that)
|
That wouldn't have solved the problem at all. We probably would have spent more money on on turtle-tunnel stimulus or somewhere else since we may have had more projected revenue. The revenue difference isn't even that great. Long-term, revenues tend to some degree of normalization regardless of the tax rate since peoples' choices change in accordance with that rate.