3 ms·

Not totally during the 2008 recession, there was support for cutting taxes, but not increasing spending. "Austerity"

• jacquesm 9y ago
  Cutting taxes more or less automatically results in increased spending.
  • pja 9y ago
    Not if the tax cut is used to pay down debt, or is "saved" by buying government issued securities. Neither of these result in more economic activity. Sounds an awful lot like the post 2008 environment, no?
    • gozur88 9y ago
      That's not really true. If you maintain the same level of spending but cut taxes, you're going to get money going into the economy. When those government issued securities are bought, for instance, there's someone on the other end of that transaction that now has money. The real problem with the 2008 recession is monetary stimulus doesn't really work.
  • zbyte64 9y ago
    As long as you don't cut services along with those taxes.