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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (171063)	6/12/2003 8:00:23 PM
From: TimF	Respond to of 1583771

Well you and Mr. Bush need to get in sync...... Why? Neither one of us speaks for the other. You had better hope they spend it on goods or stocks because if they save it, there will be no immediate boost to the economy. As I said I care more about the long term benefit, but if they save the money, it does get lent out. It might take effect slower then if they by goods but it will have an effect. You are making an assumption.....there is no guarantee that it will work the way you suggest. There is never a guarantee but the history of previous tax cuts and the general understanding of economics suggest that they will. The effect may be slower or smaller sometimes but it is still there. It can also get swamped by other problems. If there is a second terrorist attack as big as 9/11 or Iraq goes much worse then most people think it will or the situation in Korea or between China and Taiwan, or between Pakistan and India gets very bad then no tax cut might be big enough to avoid a worsening economy. Even something more subtle like sustained higher oil prices, or an increase in regulation, or a trade war will have more of a short term effect than any tax cut, and possible more of a long term effect then a small tax cut. In any case the economy is mostly in the hands of the private sector. Tax cuts provide a boost in the short term and help in the long term but even absent such shocks as those I list above the government doesn't directly control economic growth. Tim