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Politics : Ask Michael Burke
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To: Skeeter Bug who wrote (109738)10/30/2007 8:38:36 AM
From: Freedom Fighter  Read Replies (1) of 132070
 
skeeter,

Anyone that thinks that $1 in the hands of an effective efficient capitalist is not worth more than $1 in the hands of an idiot in terms of future economic growth is probably the latter. ;-)

The only problem with the "theory" as marketed by "politicians" on the right is that the benefit is not dollar for dollar.

If you cut taxes by $1 and it becomes savings and investment instead of government consumption, it creates greater growth "over time", but it doesn't generate enough growth to produce $1 of additional revenue. So you wind up with a short term deficit, but less than a $1.

That's why the goal should be to cut government consumption (spending) and taxes for a net of zero. That way you get the benefit of more efficient use of capital but without the deficit.

Unfortunately, the republicans are not interested is balanced budgets. They are typically only interested in reducing taxes and generating "short term" economic growth.

The democrats are not interested in balanced budgets or economic grwoth. They are interested in expanding government, having more control over the wealth of society, reducing economic freedom, making more people dependent on their programs so they can be elected in the future when republicans try to cut them, imposing their values on tax payers that might want to make contributions to other areas etc....
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