|
excuse my humor, those who were offended. I often try to be funny, for funnys sake, with no animosity intended. In the great depression, the economy continued to fail because of deflation, and the deflation continued because hoover insisted on having a balanced budget. Because he would not budge on that, the gov could not affect the flow of money. when nixon took us off of the gold standard in the 70's, that gave the gov the freedom to grow and retard the amount of currency in circulation. It is an accepted theory of keynesian economics that gov's cannot run correctly without a deficit. combining these things allows the gov to actually steer the economy, but not totally control it. the idea behind deficit spending is to give people more of their money so that they will either invest or spend, allowing more capital to be available, or increasing economic activity that will create jobs,(supply and demand) and increase the base of taxable income in the long run. the trick is to control inflation. as long as the gov doesn't increase the available money for economic activity by actually printing more money, then inflation will not increase. by allowing people to simply spend the money they make, more money circulates thru the economy. then the gov revenue grows out of the deficit, and jobs are created. when you get down to it, most people want to be able to pay the cable, drive a decent car, cover the mortgage and want to go out to dinner now and then. because the usa is primarily a service economy, the only way to stimulate the economy is by giving people more money to spend on services. i would rather have a trustworthy (financially) gov in a deficit situation and know that my job is more secure, because the economy is growing or at least humming along, than not have the deficit, and know that my job is tenable. I won't spend any money if i am trying to stockpile against possible job loss. less money moving, less money for people to get what they want. as for tax cuts for the rich, you can only give tax money back to the people who actually pay them. 96% of the income taxes in america are payed by 50% of the taxpayer base. that means a lot of people out there aren't paying taxes (fica type) anyhow. If a rich person gets a tax cut, who am I to bitch, it isn't my money to begin with. the mindset that I should have any say about anyone elses (personal) money is the whole problem in this country. i have found that a lot of wealthy people spend a buttload of money on things that stimulate the economy. works for me.
__________________
"My give up, my give up." - Jar Jar Binks
|