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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: JBTFD who wrote (13883)9/23/2003 11:37:30 PM
From: gpowellRespond to of 306849
 
To the extent that the future tax burden implied by the deficits is anticipated, there is no net stimulus. Theory suggests that if spending does not decrease then the extra future taxes needed to service the larger public debt will offset the current tax cut. Therefore, no one is better off and thus no change in aggregate demand.