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joether -> RE: Obama bitch slaps Willard (8/10/2012 4:25:00 AM)
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quote:
ORIGINAL: subrob1967
quote:
ORIGINAL: Politesub53
So how is Roney going to fund these mythical tax cuts, without increasing the deficit ? I seem to recall a former US president saying "Read my lips, no more taxes"
Well Mitts, you cant reduce government revenue without replacing the money from somewhere, so whats the secret. Job cuts ? Stealth taxes ? Borrowing ?
As an outsider I am surprised people in the US fall for this guff.
Um by reducing government spending... Duh!
If the government spends less, the tax payers have to pay less... It's simple economics.
Yeah, I'm surprised how often this sort of thinking has gotten our nation into so serious trouble. The idea 'a few years ago' was to cut taxes, thereby force the budget to be cut. Unfortunately, that turned a surplus we once had into a growing deficit. The effect Republicans were looking forward, did not take place. Rather than fix the obvious set of problems, they decided to ignore it. That foolishness costed the country dearly. The problem subrob, is most folks have no idea what '$100 Billion in US Goverment spending' buys in terms of US Jobs. Added to that, is this nation buys 32-35 units of '$100 Billion in Goverment Budget Spending'. It not only quite a few hundred thousand jobs, but that the grand majority of those jobs are private sector or 'down stream' jobs.
When you cut spending from the budget, during a recession, you are in effect, just adding more people into the unemployment lines. You are reducing the circulation of cash in the local/state economies, and reducing the chances (however small they were just before) of new jobs being created. Some of these are immediately felt and others a few months after. Most of the people that lose their jobs will mostly likely will never know how much their job was tied into goverment money spent in their company/industry. I would laugh at the conservatives whom cheer when said goverment spending is cut, only to lose their job in a tough market like ours, as the reality is that person might have been the breadwinner for the family. There are some really bad results of cutting the spending during a recession. It really is both sad and disappointing that many Americans just do not have this knowledge and wisdom.
If anything, create additional jobs for a year or two. Place more money into the local/state economies will have a much more effective chance at creating real demand (not the artificial demand from goverment spending). As demand rises on its own, we'll see more full-time, long term (read permanent) jobs in the market place. After the economy is health, THEN, drop some of that goverment spending. That was what the American Recovery and Reinvestment Act of 2009 was set-up to accomplish. The numbers have found it did exactly as the economic theory it was based on, said it would do.
'Chopping a few hundred Bil....' from the US Budget would be very unwise for the next few months (maybe a year).
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