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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: No Mo Mo who wrote (123788)	7/21/2010 9:59:50 AM
From: Freedom Fighter	Respond to of 132070

No MO MO >Cut the spending and you get a win/win.< It's a mathematical certainty that you can't run a country successfully for a very long time when the rate of growth of government spending is exceeding the capacity of the economy to grow. IMHO, it's an economic certainty that raising taxes to balance a busted budget that is largely consumption like ours will hurt economic growth over the LONG HAUL, especially if you target capital. I speak of "long haul" because any short term Keynesian impacts are about politics and not economics. The thing is, when you raise taxes on the upper middle class and rich you are invariably targeting capital and savings because those are the people that save and provide the capital for investment in growth. If you raise their taxes, they don't cut down on their consumption, they save a little less. If you want to maximize economic growth over the long haul and balance a budget, the best way to do it reduce government consumption.