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Politics : Conservative Politics /Varied Topics/ Heavy Handed Moderatio

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To: hoyasaxa who wrote (363)	12/5/2008 1:14:17 PM
From: TimF	Read Replies (1) of 417

Interesting idea. I'm not so sure I'd support it. I think smaller, but durable (permanent or at least indefinite as its not like any government policy is really permanent) tax cuts are a much better idea. But if you assume that we need to dump a lot of money in to the economy right away (I don't BTW), than a large (even perhaps total as in Gohmert's plan) tax cut would probably be better than a huge increase in government spending. Not only does it fit my general ideological preferences much better, but also recent economic research seems to back tax cuts as stimulus over extra spending "...we find that both increases in taxes and increases in government spending have a strong negative effect on private investment spending. This effect is consistent with a neoclassical model with distortionary taxes, but more difficult to reconcile with Keynesian theory: while agnostic about the sign, Keynesian theory predicts opposite effects of tax and spending increases on private investment. This does not appear to be the case." marginalrevolution.com

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