SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: DuckTapeSunroof who wrote (47413)12/10/2010 2:54:27 PM
From: TimF  Read Replies (1) of 71588
 
Whatever can be said about the Bush tax cuts as to how they might have been improved in that regard , they were a supply-side wetdream

Hardly. There was no tax reform with them, in fact they added some complexity, rather than reducing loopholes and lowering the rates as much as possible. Also the overall net tax impact after them was still far too high to be considered "a supply-side wetdream".

First, investment in equipment and software is increased substantially the past 4 quarters (14.6% 20.4% 24.8% 16.8%). Lack of investment isn't the problem right now.

That's an incredibly weak argument. It only considers a part of "all investment". More importantly (since its a very significant part, so the first point is perhaps not a major one), those percentage increases are after a very large drop, investment is still below the peak.

Sources of demand have been the missing link

Investment declined much more than consumption did. Also to consume without producing is just to go in to debt, whether that debt is personal (because the government somehow convinces people to spend a lot more), or government (because the government does the spending).

Also even if one assumed consumption was the problem, artificial short term spending stimulus doesn't provide any sustainable positive change in consumption. It creates a lot of distortion, and creates a lot of debt to do it.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News