Quote:
Originally posted by Artemis
There is no way that an economy can survive with massive spending and decreasing income, ie. tax breaks for the rich.
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Isn't this why Carter lost in '80???
Strange that such reasoning might elect a Democrat in today's situation.
JFK understood that tax cuts can increase net revenues.
Budgets spend actual dollars, not percents of GNP. In the cases of the Kennedy,Reagan, and arguably Bush(43) tax cuts, the treasury actually took in more constant dollars than before the cuts.
A zero or effecively negative interest rates may promote a deflationary economy. Japan has been enduring this for about a decade. I am not so sure that deflation would be a comletely bad thing. Cost of goods and services plumment, and the purchasing power of the poorest is automatically increased in a way that rising wages in an inflationary economy cannot effect.
