Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: combjelly who wrote (956521)	8/13/2016 7:41:32 PM
From: i-node	Read Replies (1) \| Respond to of 1574854

> It is almost as if the economic boost due to the tax cuts were almost nonexistent... Which is an absurd supposition given the fact that time and again we've seen economic tax revenue and economic productivity increase as a result of tax cuts.

To: combjelly who wrote (956521)	8/13/2016 9:31:42 PM
From: TimF	Read Replies (1) \| Respond to of 1574854

The static projections are in a sense an estimate that the dymanic effects are zero, which is pretty much always wrong. Dynamic estimates by politicians (at least those proposing tax cuts, and in other areas by those promoting more spending as stimulus or positive effects for most other things politicians do or want) are usually too optimistic, but zero is just silly. The problem is that its not just hard to estimate the dynamic effect beforehand, its even hard to estimate it looking back. Economies are complex, with many different major effects and literally (at least) billions of minor effects and you don't get to run controlled experiments on whole economies. In the short run teasing out how much of the effect is a stimulus effect and how much is a supply side effect can be difficult (although both would be dynamic effects), in the long run the effects should be large (even if its a small percentage it compounds) but in the long run tax policy changes, as do countless other things, so its probably impossible to get solid uncontested specific measurements.