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> under Truss we are seeing tax cuts for the rich funded by borrowing Any reduction in government income is funded by borrowing for a budget that is not in sur
by throwawaylinux 4y ago
> under Truss we are seeing tax cuts for the rich funded by borrowing
Any reduction in government income is funded by borrowing for a budget that is not in surplus, which seems to be the default state of things these days.
And what's stupid about government reducing income and borrowing in a downturn?
- cool_dude85 4y ago>And what's stupid about government reducing income and borrowing in a downturn? Government finances are not like your household's, reducing spending is exactly the opposite thing the government should do in a recession.
- throwawaylinux 4y agoI don't know what that has to do with what I wrote though. Reducing revenue is also one of those things that conventional wisdom says a government "should do" during a recession, so I'm asking why it was stupid.
- wucaworld 4y agoThat is not correct. Spending is the appropriate response when faced with a demand driven recession. This is a supply driven recession and reducing govt demand may not be a bad idea.