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

To: combjelly who wrote (620545)	7/21/2011 6:23:35 PM
From: i-node	1 Recommendation Read Replies (1) \| Respond to of 1584007

>>> No, it was predictable because the problem was demand. Yes, we wouldn't have a recession if demand were still high. The one thing government can do that MIGHT help stimulate demand is to adjust tax policy. That's it. So-called "deficit stimulus spending" doesn't work. We know that. And we know WHY it doesn't work. It never has, and it never will. It doesn't work because the dollars Congress spends have to come from somewhere: Taxpayers, domestic, or foreign investors. That's where is comes from. If it comes from taxpayers, it is simply a redistribution of demand, not a creation of new demand. If it comes from domestic lenders, there is that much less money for them to spend [or maybe invest] in the private economy. And if it comes from foreign lenders, total demand and economic output are unaffected (as net imports increase by an equivalent amount). It is as though you people think the government can snap its fingers and produce new demand from nothingness. It is a totally ridiculous assertion.