"Doug Miller" wrote in message
...
In article , "Adam Corolla"
wrote:

Because they use the reasoning "Reducing taxes stimulates the economy,
increasing business and creating more jobs, which means more salaries are
being paid out and taxed, which brings more money in as taxes." In
reality,
supply-side economics is fundamentally flawed and the boost to the exonomy
comes from government borrowing and spending.

That's absolute nonsense.

Confused? I'll dumb it down for you.

1. Increased spending on US goods and services boosts the economy.

2. Your belief that reducing the tax rate boosts the economy is based on #1
above. Obviously, if everyone stuck their extra money from tax cuts into
savings accounts, there'd be no boost to the economy.

3. In private spending, the bulk of it for merchandise goes overseas.
Therefore it doesn't boost the US economy much. Or are you denying that
almost every item you can buy is made entirely or mostly in other countries?

4. In government spending, the bulk is spent on US goods and services.

Therefore, lowering taxes will result in less money going into the US
economy and more of it going overseas.

It's simple reasoning.




Government borrowing drives interest rates up by

The feds set the interest rate. Government borrowing doesn't do anything to
the interest rate. Most of the money the US government borrows is borrowed
from China.



And government spending never
provides as much of a boost to the economy as the same amount of private
spending -- they can spend only what they take from us, but far less
efficiently.

Sigh. It doesn't matter how inefficiently the government spends the money.
The government spends money almost exclusively within the US. If they spend
a dollar, a good 95% of it goes to US businesses. If they give that dollar
to Joe Blow, he goes and spends half of it at Wal-Mart or other merchandise
sellers, and most of that goes to foreign countries. Makes a car payment,
mostly the same thing. Etc.

Tax breaks might create a few jobs at places like Wal-Mart and Sears, but
government spending is creating thousands of engineering jobs, middle and
upper management jobs, etc--jobs that make people thrive, not just keep them
alive.

If what you're saying is true, there should be a graph or chart based on
cited data which proves that lowering taxes is always followed by increased
tax money coming in. If you can find one I would be grateful and will
recant, because I *want* to believe that lowering taxes is good for the
economy. I don't like paying taxes any more than you do! And for the
record, I'm NOT in favor of increasing taxes to stimulate the economy. I'm
in favor of the government sharply curtailing spending, and paying off the
national debt. The US is rich in resources, we can support ourselves rather
than needing handouts (loans) from China and other countries. In that way,
I'm actually fiscally conservative--much more so than the borrow-and-spend
Reagan/Bush/Rush neocons, who are for practical purposes less so than the
democrats!