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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (354221)	2/5/2003 4:48:34 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 769670

When people receive a tax cut, it can be used in three ways: Consumption, Saving, Investment. Consumption and investment will produce an economic stimulus. Saving (In a Bank) will only produce a stimulus if there is a demand for investment capital. Right now, there is little demand for investment capital - witness, historic low interest rates. Low and moderate income people will spend their tax cut, hence a stimulus. Upper income people, in this economy right now, will probably save their tax cut, hence no stimulus.