Originally posted by cjbaldw:
Originally posted by Nate S:
Originally posted by cjbaldw:
Originally posted by Nate S:
Originally posted by Kremithefrog:
And one thing I do know, to make money you gotta spend money. To get economy back on track they have to spend money on some things and pay this stuff back after a while



If you know any basic economics, you know that when you increase taxes and overall spending at the same time, it provides a boost to the economy in the short run, but causes a depression in the long run. Bush did exactly this. He lowered taxes and then spent a shitload of money on the war. Now all we have to do is wait for the depression.



Actually, it's the opposite is it not?



no, it isnt.



Well, in all fairness, not the opposite, but different. If you increase taxes, meaning more gov't spending and more wealth redistribution, and increase spending, when you've got less money to spend because of increased taxes, that means more deficit spending, whether by the gov't or individually. That can and will cause a depression if we don't grab ahold of the fiscal irresponsibility and get back into positive numbers. Sooner or later the bubble will burst.

What I meant in regard to opposite was, that decreasing taxes, which increases personal wealth, will benefit the economy long term. Increasing taxes never benefits any economy in the long term. This is why we've got to be very careful about deficit spending and the existing federal debt, because if we have to raise taxes considerably at some point in the future to pay for debt, it will negatively affect our economy for a much longer period of time than if we take it seriously now. It's like with heart disease, even if you get healthy later in life, but your arteries are already clogged and damaged, you still have heart disease, and you still need treatment, even if you're doing everything right from that point forward, and it takes a LONG time to reverse heart disease without surgery, though it can be done over a period of years of strict diet and exercise, but life sure sucks while you're getting better. Unfortunately, there's no magic surgery for debt problems, because the federal gov't can't go bankrupt without serious consequences to the world.




we hold slightly different economic positions, but yeah, youre exactly right in your respect. however, this is why im extremely worried right now...and the next 4 years will show how well (or badly, for that matter) bush's economic plan worked.

1998 T-Red CSVT 3.0L