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> These are relatively modest tax cut bills arriving at a time where the economy is growing and deficits are shrinking, which is exactly where you'd want them.
by CalChris 9y ago
> These are relatively modest tax cut bills arriving at a time where the economy is growing and deficits are shrinking, which is exactly where you'd want them.
So you want to cut taxes and increase deficits during growth times? This is, of course, not just different but exactly the opposite of Keynesianism. What is it that you plan to do during recessions? Cut spending and increase taxes to close your deficit?
This is insanity.
- briandear 9y agoKeynesian economics is insanity. Disproven by Milton Friedman and others.
- ubernostrum 9y agoWe've already seen one of Friedman's greatest (in terms of influence) disciples -- Greenspan -- openly question whether his faith in "proven" economics was well-founded. One wonders what Friedman would've thought if he'd lived longer. (my money is on "he'd have found some way to blame someone else and claim he was still right", but one can hope)
- CalChris 9y agoMilton Friedman was a monetarist which is a belief in controlling the supply of money. That's a different instrument but actually quite similar to Keynes: they are both feedback control mechanisms. That said, monetarism is most definitely NOT cut taxes and increase spending in good times. Keynes and Friedman would both call that insanity.
- fjsolwmv 9y agoTaxes on fiat currency are away to distribute expenses, not a way to raise funds. A fiat currency government can print money whenever it wants, which is taxation via inflation. (For more, see: Modern Monetsr Theory.)
- mempko 9y agoDeficits are always necessary. The size of the deficit needs to very. Since we are nowhere near full productive capacity, there is no danger in too many dollars chasing too few resources. The deficit needs to be reduced when economy is at full capacity to avoid inflation.
- CalChris 9y agoSaying that deficits are always necessary does not absolve the cut taxes and increase deficits during growth times nonsense. Cutting taxes and increasing deficits during good times is just populist feel goodism. Yes, it's easy to cut taxes and it's easy to increase spending. Heck, trickle down even says this will increase tax revenues (except that we've tried that and it doesn't.) But not to worry because the people who are responsible for the mess will not have to clean up the mess. No, this doesn't work. We've tried it and it doesn't work. Keynesianism is a quite conservative approach, actually.