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

To: TimF who wrote (853610)

5/2/2015 12:48:42 PM

From: tejek

Read Replies (5) | Respond to of 1576742

Tim, the proof is in the pudding. I don't need theoreticians to know what's real and what's not. During the great recession, the states and national gov'ts that imposed tax cuts and austerity spending on their economies have tended to do the worse.........I am talking WI, KS, OH, NJ, the nation states of Ireland, Spain, Portugal, Greece and Italy in the EU etc........and have seen their economies recover much slower than those gov'ts that maintained or increased spending.

You all can talk theory out your asses all you want but its BS. And you know why its BS.........because it doesn't make sense logically. As I said before, you hold onto these ridiculous theories because they serve your ideology of small gov't and little taxes.

And I am sorry that you spend so much time and $$$ on an MBA degree........because it sure has muddled your thinking.

Our main results are that

a surprise deficit-financed tax cut is the best fiscal policy to stimulate the economy
a deficit[-financed government] spending shock weakly stimulates the economy.
government spending shocks crowd out both residential and non-residential investment without causing interest rates to rise.

http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2005-039.pdf

we find that both increases in taxes and increases in government spending have a strong negative effect on private investment spending. This effect is consistent with a neoclassical model with distortionary taxes, but more difficult to reconcile with Keynesian theory: while agnostic about the sign, Keynesian theory predicts opposite effects of tax and spending increases on private investment. This does not appear to be the case.
mitpressjournals.org

gregmankiw.blogspot.com