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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (40871)	2/2/2010 4:22:47 PM
From: TimF	Read Replies (1) \| Respond to of 71588

High is a relative term. In this case I'm talking about high relative to letting the private sector keep the money itself through tax cuts, which Krugman etc. consider to be much lower than the multiplier effect of government spending. Also they ignore the political risk effect of activist government. If your changing policies around, talking of adding taxes, and adding spending which will drive future tax increases, you effectively encourage business to wait on investments until things settle down, or even to cancel the investment. And the investment that remains gets driven more by politics and government policy then by what's really efficient and what would be profitable without all the government meddling.