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


To: combjelly who wrote (362941)12/16/2007 2:57:44 AM
From: Tenchusatsu  Read Replies (2) | Respond to of 1575946
 
CJ, > Running a larger than normal deficit is a common way to curtail a recession. Cutting taxes has the same effect.

It's not the same effect.

Running a larger deficit means the government is spending money it doesn't have to create "all the stuff that makes the economy turn."

Cutting taxes allows taxpayers to spend that money toward creating "all the stuff that makes the economy turn."

It wasn't clear to me before where the two of you stood in terms of having government directly pumping the economy instead of letting the market do its thing.

Tenchusatsu



To: combjelly who wrote (362941)12/21/2007 11:24:13 PM
From: TimF  Read Replies (2) | Respond to of 1575946
 
Cutting taxes decreases the dead weight loss of compliance costs, and avoidance costs/distortions.

Increasing spending doesn't do that.