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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (101680)	2/22/2005 8:07:36 PM
From: kech	Read Replies (1) \| Respond to of 793738

You should tell your friend who is angry about Bush's statement about spending the taxcuts to go look at an elementary textbook on Keynesian economics. That is the most basic way in which fiscal stimulus helps to get out of a recession. If people saved the tax cuts then they would not have had the desired effect. A couple of years ago we were almost in the famed "liquidity trap", similar to early 1930's where monetary policy, i.e. cutting interest rates, has no effect. In those situations, government spending or tax cuts (that are spent) has to pick up the slack.

To: Lane3 who wrote (101680)	2/23/2005 6:10:24 AM
From: John Carragher	Read Replies (1) \| Respond to of 793738

i did taxes for elderly for five years. it was a wake up call , these people have very little savings. depend heavy on pension ,soc sec and dividends from treasury bills. If they retired fifteen years or so ago and made very little gross income their income is relatively small. There pension if they have one has been eaten up by inflation in the last couple decades. What also woke me up was seeing lots of elderly in their nineties looking like 60 years old. amazing how some of them are doing health wise and smarts. It makes you want to plan to have some money left for nineties. gg

To: Lane3 who wrote (101680)	2/23/2005 1:09:51 PM
From: Neeka	Read Replies (1) \| Respond to of 793738

If your acquaintance can ever get over her anger she should come to realize that it is her money and she can do with it what she wishes. I'm not thrilled with the attitude that tax cuts are only meant to be spent.......we both put ours into our IRAs. Because the govt expects it is reason enough to do the opposite imo. ;) M one of the Bush-haters that I know has several pet complaints, things that really stick in her craw. Very near the top of her list, based on how often she mentions it, is the way he asked people to go out and spend their tax cuts. She was mad enough about the tax cuts, but the spending part was too much for her.