Recesion and Budget Cuts.

[CultureCitizen]

Since some economists propose applying budget and tax cuts in order to promote growth, I was wondering if there was a documented case where a country in recesion has gotten out of it by applying such policies.

 

[ScienceRocks]

No,

It didn't work in Greece or Germany.

The best way to grow a economy is for it to allow for competition between many businesses and huge investment into infrastructure, science, r&d and education.

A few major corporations getting all the tax cuts isn't going to grow the economy.

 

[CultureCitizen]

A few major corporations getting all the tax cuts isn't going to grow the economy.

Well, it sounds good in theory, but, I am really wondering if investment drives consumption or if consumption drives investment.
It might be both of them , but just which is the stronger driving force. In a developed economy I suspect it is the later, but I would like to see some examples of the former. I strongly suspect that cases in which there is a market contraction only a significant increase of exports will be the main reason why the economy starts growing again, then tax cuts only make sense in the context of an economic plan : allow the growth of export industries.

 

[EdwardBaiamonte]

Since some economists propose applying budget and tax cuts in order to promote growth, I was wondering if there was a documented case where a country in recesion has gotten out of it by applying such policies.

dear, Ireland cut the corporate rate to 11% and most of the world's major corporations relocated there in whole or in part. Is it still over your head? NYS now has a huge tax cut program to attract business there.
1+1=2

 

[EdwardBaiamonte]

strongly suspect that cases in which there is a market contraction only a significant increase of exports will be the main reason why the economy starts growing again,

thats absurd idiotic liberal and 100% illiterate. If you haven't been to college why do persist in making a fool of yourself here:

1) a market contraction is not caused because people decide they want to contract the food, clothing and shelter they buy, its caused by govt interference.

2) an economy grows as you remove the interference and encourage new inventions. We got from the stone to here with new inventions supplied by Republican supply siders. Do you get it?

 

[CultureCitizen]

In the case of ireland:
a) the tax rate dropped from 30% in 1999, dropped to 12% by 2003 and has stayed there since then
b) The government spending increased from 5,000 million in 1999 and reached a top amount of 7500 millions by 2009, and declined to 6,500 by 2012
c) The gdp per capita rose from 36000 in 1999 to 48000 in 2008 then dropped to 42000 by 2011.
e) Employment was 1.6 million by 1999 rose to almost 2.2 million by 2008 then dropped to 1.8 by 2011 and is actually 1.9 million , way below pre-crisis employment.

Arguably, there is not much to be cut regarding the corporate tax rate ( 0% is still possible, but probably would not have the same effect as cutting from 30 to 12 and would significantly decrease government revenue ). Also Jobs have not been recovered in spite of the low corporate rate and the reduction of government spending by 1,000 millions.

Ireland Government Spending 1997-2015 Data Chart Calendar

 

[EdwardBaiamonte]

In the case of ireland:
a) the tax rate dropped from 30% in 1999, dropped to 12% by 2003 and has stayed there since then
b) The government spending increased from 5,000 million in 1999 and reached a top amount of 7500 millions by 2009, and declined to 6,500 by 2012
c) The gdp per capita rose from 36000 in 1999 to 48000 in 2008 then dropped to 42000 by 2011.
e) Employment was 1.6 million by 1999 rose to almost 2.2 million by 2008 then dropped to 1.8 by 2011 and is actually 1.9 million , way below pre-crisis employment.

Arguably, there is not much to be cut regarding the corporate tax rate ( 0% is still possible, but probably would not have the same effect as cutting from 30 to 12 and would significantly decrease government revenue ). Also Jobs have not been recovered in spite of the low corporate rate and the reduction of government spending by 1,000 millions.

Ireland Government Spending 1997-2015 Data Chart Calendar

you idiot!! the point is that Ireland proved perfectly exactly what you disbelieved, namely, that when you cut taxes people respond rather dramatically. NYS has a huge campaign now based on identical reasoning.

Since you have not been to college, let alone taken economics there here's a question for you. Is Andrew Cumo eliminating business taxes to attract or repel businesses?

Second question: is it better to attract or repel businesses?