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To: Skeeter Bug who wrote (13868)	9/23/2003 8:03:20 PM
From: gpowell	Read Replies (4) \| Respond to of 306849

A wealth transfer between equivalent economic agents has zero economic impact. This means that variables such as GDP, aggregate supply, and aggregate demand are unchanged. The point of my zero economic impact statement is the assertion that the tax cuts in the absence of spending cuts will have no stimulus effect. It’s not a hot button for me at all. It is, in fact, a mild criticism of the Bush plan. You didn’t understand the term “economic impact” – but you wanted to respond to my post, which for some reason you took to support the tax cuts, so you made an assumption about my personal interest in these cuts as a motivating factor for my series of posts to Elroy. My original post to Elroy simply showed the wealth effect from lowering taxes (which the Bush plan isn’t really doing) – he then went off on wealth destruction tangent that had nothing to do with my post – and was wrong as well. The thing that made me reticent to waste anytime responding to you was your statement in response to my “fully anticipated future tax statement”: gp, i'm not interested in expectations b/c expectations are often selfishly motivated and wrong. This one statement reveals both your lack of understanding of some very basic fundamental concepts and some erroneous preconceptions. You distrust selfish motives when in fact a close approximation to selfishly motivated behavior is at the core of all economic theory. Further, you assume that having wrong expectations some how invalidates the use of expectations to explain the impact of policy decisions. Again, the role of expectations is firmly established in core economic theory. i'm happy to discuss ideas - it is you who SHUT DOWN after the insults. Try to have some empathy for me and realize that I just don't find discussing this with you a productive use of my time. Perhaps on some other thread you can do the same to me – I’ll understand and I won’t get snippy.