ShackledNation
Libertarian
I agree the tax code must be drastically--and I mean drastically--restructured. But spending does not grow the economy. Savings does. That is another error both parties have been making and why neither ever seem to get it right. It was perpetuated by the delusion of Keynesian economics. The structure of production is more like a triangle. On one side you have capital intensive goods (like research, machinery, the very earliest stages of production) and on the other side you have production closer to final consumption (the actual product consumers buy). Increasing consumer spending will shift the structure so resources are piled on to consumer goods. But capital goods, new technologies, innovations--those are what really grow the economy and can make products cheaper and more affordable for all. What we need is more saving in this economy. The reason we have recessions is because the Federal Reserve and our monetary policy allowing for the creation of money creates the illusion of savings, which increases investment in the capital intensive side of the triangle. But because rising prices is always the consequence of money supply expansion, people will not be able to afford the projects. They will collapse and fail, and the production structure will have to change to reflect actual savings vs. spending. People tend to save more and spend less, which would actually increase the recovery of a recession. Notice that the depressions that take the longest to heal often are accompanied by massive spending. Our current situation is a perfect example.Really? Where? And how many from 2000 to 2008? And the tax breaks were to give them the means to CREATE jobs, NOT as a permanent situation...which is why the tax cuts were initially signed on with a sunset clause...because eventually it would be detrimental to trying to balance the economy.
Oh, I see. You think that the private sector is deliberately not creating jobs to blackmail the politicians into making the tax cuts permanent. Correct?
If so, that's pretty silly.
The private sector is sitting on cash and not creating jobs because it's easier. If jobs is the goal, cash must be put in the hands of consumers, not producers. It's not rocket science.
Don't get your panties in a right-wing twist - I don't mean take from the rich and give to the poor, just make the tax code simple and fair and see what happens.
More spending will only make matters worse, especially if it is perpetuated by government. If we save more, the distortion caused by expansion of the money supply will become less sharp because the savings will begin to actually exist.