How To REALLY Get An Economy Moving Again
Oh Tax Cuts. You’re like the horror movie villain that never goes away. We kill you over and over again but you just keep coming back!
ProudToBeCanadian is someone who actually irritated me enough to motivate me to post a video again, who knew it could happen? Well it wasn’t all that difficult.
To the substance! PTBC unfortunately falls victim to the “Government spending never gets anything moving again, it’s always tax cuts!” disease, which is understandable, considering that failed theory permeates American politics like an aforementioned horror movie villain. The initial point of his video was I think a misunderstanding, or just stupid, because he seems to think Obama was trying to make a failed standalone joke, when he was actually responding to his critics, who were claiming it was some sort of liberal spending package, and not a stimulus bill.
Of course, a stimulus bill is a spending bill, even the tax cuts require money to be spent, because it’s either choking off revenue, or providing a plain out tax rebate, but that’s not the point of the video.
The point is, PTBC shows a serious lack of understanding on how to get an economy moving again. Apparently, government spending IN ANY INSTANCE is a bad an ineffective thing and tax cuts should be preferred. Which of course, would surprise anyone who’s been living in the real world since 2001.
Tax cuts are ineffective for a variety of reasons, which I explained in the video, but the short version of that is, in order to get people spending money through a tax cut to the amount it would require to turn everything around, (which is a huge umption, the umption people people actually spend that money, instead of save it) it would require a tax cut the size of which we have never seen. Government spending is more flexible, is guaranteed to be spent, and provides more ‘bang for the buck’ than a tax cut would. Tax cuts also choke off revenue for essential government services, that I suppose in PTBC’s world would be abolished entirely.
The problem here is, government spending is more effective on a per dollar basis than a flat out tax cut/tax rebate in terms of getting things moving again. But I suppose he just simply doesn’t understand this. Oh well, I’m back, anyway!
“Food stamps tops the list, with each dollar generating $1.73 in economic activity because people who get the food stamps will spend them in grocery stores, and not simply use them to rebuild savings or pay off credit card debt.”
http://thepumphandle.wordpress.com/2008/11/04/feeding-a-family-on-food-stamps/
“Mark Zandi, chief economist at Moody’s Economy.com has quantified the “bang-for-the-buck” of the various components that are under discussion in the current stimulus package. He estimates that extending UI benefits would generate $1.64 in additional economic activity per dollar of cost. That is the second highest bang-for-the-buck of all stimulus options, just behind a temporary increase in food stamp benefits at $1.73.[4]”
http://www.cbpp.org/1-31-08ui.htm
Duration : 0:9:57
alhaquin 15May09
hmm, I agree with …
hmm, I agree with you but there are still many factors to consider, such as how are we gonna pay back that money from the gov, are they just printing more money? or they actually taking from the taxpayer safe? Im not too sure of this yet.
dominus2k 15May09
watch zeitgiest, u …
watch zeitgiest, u will realize it wasn’t worth anything to begin with
codymac231 15May09
you could fix the …
you could fix the economy by auditing the federal reserve and getting them to stop printing money out of thin air which they have been doing a of a lot more of lately….thats the reason our dollar is becoming worth less because they keep printing more money without anything to back it up…. americas stimulus package should have been bringing back the gold standard so the fed cant pull any more money out of their the international bankers run america not obama OPEN YOUR ING EYES!!!
BeyondInfinium 15May09
Guys THE BEST …
Guys THE BEST INVESTMENT IS THE PEOPLE.
hobotechMASTER 15May09
eleventy bajillion
eleventy bajillion
chasermanx77 15May09
and hey did u know …
and hey did u know the top 20 works citys in the US have had a democratic mayor for at least 10-15 years ok this deficit bill will not help plz stop acting like u know every thing take a look at what the republicans say with out looking at them like thier bad even before u hear it ok plz stop economics 101 i bet he know stuff “double national debt in last 2 years” make it tripple it proud to be an american does understand what he says reagan didint get us into as u say a storm did he??
chasermanx77 15May09
jsut saying tax …
jsut saying tax cuts saved us when reagan came in to power serch the laffer curve when theres more taxes people become less willing to work because thier money is going to the governement and not them whats irritating me is that you say that proud to be a canadian says is “he has a sever lacking of understanding anything” look on both sides of the arugument plese ur looking very one sided ok as i said tax cuts do work and hey deficite of government moneyis growing larger and the new stim bill
FluxCapacitor2008 15May09
Does any one know …
Does any one know what was the total amount of tax money the government took in for 2008?
Dynamoace 15May09
Well his source was …
Well his source was coming from Fox news, so the source is flawed before we started.
Interesting quote from TV site TV-Ark:
“Fox decided to position itself as the upstart, with a pronounced editorial voice a fair and balanced alternative to the more liberal slant of the news media (CNN). ”
So in my opinion, both are just as bad.
The Republican fanatics were trying everything to keep their party in, including spreading fear and conspiracy. Is it because of the tax cuts they loved?
smudge6699 15May09
So your argument is …
So your argument is, if tax cuts cost too much and the people might not spend the money because they’re too poor, the government should be allowed to make them poorer by proxy without their consent because that will get the economy going again.
HOW?
NB if the banks made the people poor why should they get the money?
I’m looking at a HARVEST, not a DEPRESSION, after all which way is the money going, towards the people or away?
Clearer now?
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