Norman
Diamond Member
- Sep 24, 2010
- 31,254
- 15,188
- 1,590
a tax cut on SS taxes would work as well as a rebate check for a demand stimulus etc.....
the poor and middle class SPEND their 'stimulus' tax savings the fastest, is what all the studies have shown....stimulus is not really a stimulus if it is not all spent and concentrated within a short period....yep, the obama stimulus was definitely not all stimulus....because it was spread out and piece-meal.
*rebate check would be more effective, but tax cuts could work too
This has been explained many times.
Sending people money does nto create demand or jobs. There is no "multiplier effect."
We have just had about 3 years of this experiment (again) and the results are that such thinking is wrong, totally wrong.
The truth is that investment creates jobs. How much demand was there for a Kindle before the first one was sold? Answer: Zero. Same with an iPhone or any other gadget. first there was an idea, then an investment to develop, produce and market. Finally there was demand.
But unless companies perceive a business atmosphere that is favorable to risk taking, they won't do it. And that is what we have right now.
But if nobody has money for a Kindle, why would anyone bother developing, manufacturing, and marketing it, regardless of how much capital they have access to?
If nobody has money for kindle, why should kindles be produced?
Should we also dig and fill ditches? Create demand for that kind of service?