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

To: combjelly who wrote (511625)	9/9/2009 2:02:00 PM
From: i-node	Read Replies (1) \| Respond to of 1578930

It certainly wasn't solely a function of tax rate. Like you are pretending. The US became a manufacturing powerhouse because it was the low cost producer. Low tax rates are a necessary condition for the kind of growth the United States has experienced at times. Higher tax rates stifle growth, period. That's not to say that other factors can't partially offset higher tax rates, they can. But when tax rates get confiscatory as they often have been in the past, you kill economic growth. And lower tax rates will, during ordinary times, result in increased growth. There have been plenty of cases when taxes were raised and the economy didn't take a hit. WWII is a prime example. But far from the only one. It is hard to say "it didn't take a hit". When JFK cut taxes the economy took off like a rocket. The reasonable inference is that well might have happened sooner had the rate cuts come sooner. "LIKE OBAMA, he mistakenly believed that deficit spending was stimulative and he spent like a drunken sailor. Meanwhile, the unemployment rate DOUBLED." Nonsense. You are making shit up. Okay, unemployment increased by nearly 60%. Not doubled. Until the current fiscal year ends on July 1, Nixon plans to pump about $1 billion a month more than originally planned into spending programs designed to put money into the pockets of millions of currently unhappy voters. Farmers will get increased crop subsidies; federal workers will receive the maximum pay increases possible under Phase II guidelines; there will be some new jobs for unemployed scientists and engineers. Such openhanded spending marks Nixon's conversion from unsuccessful policies of conservatism and gradualism to the activist, pump-priming Keynesian economic theory, which holds that big Government spending is one of the fastest ways to stimulate the economy. Said a top Nixon adviser: "The President looks on this as an investment in getting the economy moving." -- Time Magazine, Jan 31, 1972