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

To: Kenneth E. Phillipps who wrote (392741)	4/15/2003 4:50:08 PM
From: CYBERKEN	Respond to of 769667

Yes, he's REALLY, REALLY that STUPID. Kinda makes you feel a kinship for Patsy, doesn't it?...

To: Kenneth E. Phillipps who wrote (392741)	4/15/2003 4:59:34 PM
From: DuckTapeSunroof	Respond to of 769667

Re: "You are suggesting that deficit spending produces no real growth in the economy because the stimulus effect is consumed by the rate of inflation. Is that right?" >>> Well, yes, in the long-run that is true for sustained deficits. (You did notice how the inflation rate fairly closely matches the deficit spending rate....) >>> Even the Keynesians only argue that deficit spending can produce a short-term economic boost (ideally: only a tool to be used counter-cyclically during economic downturns to provide a 'kick-start'. It loses it's effectiveness unless it is balanced by a policy of debt reduction during the opposite 'up' economic cycle). >>> Another thing to consider is that government spending never provides an economic boost as large as that produced by spending by individuals and private enterprise. (Technically, the 'velocity' of the money is less.)