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Old Posted Aug 3, 2010, 3:53 AM
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202_Cyclist 202_Cyclist is offline
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The biggest US companies and I have one thing in common: we are hanging on to our cash until the next election restores some fiscal rationality and a consistent economic policy.
This discussion is digressing but this is exactly why yet more tax cuts are not an effective way to stimulate the economy. Many people, especially the most affulent save a large percentage of their income and can be expected to save a significant part of any tax cut.

As noted this morning by Fareed Zakaria in today's (Monday) Washington Post, Clinton raised taxes on the wealthiest households in the early 1990s and this was followed by a decade of very robust growth. Bush enacted massive tax cuts the last decade and we had sluggish growth, at best.

Far more effective for stimulating economic growth is aid to state/local govts so they don't have to lay off employees (police, firefighters, teachers), extending assistance for the unemployed (who will spend nearly all of the assistance they receive, putting this money back into the economy, and yes, public works/infrastructure projects.
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