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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Metacomet who wrote (255047)	7/5/2014 5:14:35 PM
From: Steve Lokness	Read Replies (2) \| Respond to of 541933

<<<<< ..and you have spending, like how you build roads and make bridges, you know jobs from spending>>>>> Oh hi Metacomet, Happy Fourth to you too. Yes of course the building of the roads is a stimulus - didn't think I needed to confirm that. BUT, the point I'm trying to share with you is that if the government takes with one hand and then spends with the other - that is not a keynesian policy. BY the very nature of government spending there is a certain amount of loss by seepage. That is the cost of the government to run itself - think of it as overhead. CLEARLY, by all accounts tax cuts is a form of keynesian stimulus - whereas tax inceases are not. BTW, that is why I do not like some keynesian ideas such as tax cuts and general stimulus spending as pushed by Krugman initially. If you give an individual a tax cut and that individual goes out and buys a TV made in China - what you are doing in essence is to stimulate the Chinese economy on the back of the tax payers. It has a compounding effect also since now we have to also pay interest on the money not collected. That might have been an appropriate idea in the time of Keynes - but not now. Not in a world marketplace where goods are increasingly shared among nations. You have to figure out a way to keep any stimulus money in America for keynesian ideas to work!!! So that American workers benefit. Roads qualify. Sooooooo, like I said, I agree with Krugman - tax the shit out of gas and spend on infrastructure. But don't think raising taxes is a keynesian idea - it is not.