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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (7403)	12/19/2005 2:25:14 AM
From: Dale Baker	Read Replies (1) \| Respond to of 541674

That is the huge question mark about the efficacy of tax cuts, especially if they are paid for with deficit spending. They were implemented twice in a big way, both as the economy was in a recession and then as part of a deficit-stimulus package. I have never seen an objective academic analysis about those two recoveries. Were they driven by tax cuts, interest rates, deficit spending or just the normal business cycle? It is taken as an article of faith on the right that tax cuts are the key. I would like to see some actual proof before accepting that assumption myself. And to place myself not too far left, I think tax cuts are great if the budget stays balanced. I benefit personally to a substantial degree. Just never works that way in practice. And I would rather have a sound national fiscal picture than a few thousand bucks more to play with that I don't really need.

To: neolib who wrote (7403)	12/19/2005 10:59:00 AM
From: MrLucky	Read Replies (1) \| Respond to of 541674

Could you quantify this vs. the FED's interest rate action over the same period? How do you know which one deserves the credit? I tried to keep the topic broad because it is not a single item that jacked up the economy. The Bush economic policy which included fed rate decisions, the tax cuts, liquidity and job increases etc. all contributed. Sort of like clinton who took credit for 20 million new jobs. Did the fed create create the jobs or his tax increase? It really doesn't matter. As President(s) they get the credit or the blame for results.