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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
by 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 agoThat'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.