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Politics : Formerly About Applied Materials

AMAT 254.72

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Dec 1 3:59 PM EST

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To: Fred Levine who wrote (70402)	6/5/2003 10:01:48 AM
From: chomolungma	Read Replies (3) of 70976

For the love of me, I cannot make any sense of Bush's economic policies. As much as I like the reduction in taxes on investment for my own wallet, I think the the tax package gets a C- for what it's supposed to do - stimulate the economy. As I figure it, it cuts taxes about $200 billion over the next 19 months. This is great, but only a portion of it will go to those who'll likely spend it. A better approach would have been to keep some sort of ongoing rebate program until this recovery reached the point where it was self-sustaining. Those who defend the cuts, especially the dividend cut, think that this will spur investment which they believe is the key to a growing economy. In my economic view of the world, you need demand and profits before companies will invest so lowering the cost of capital is useless. Get the economy growing again and then worry about those of us who provide investment capital.

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