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| quote: | Originally posted by occrider
Thus if I were bush i would pump MORE money into the economy rather than less. |
The great depression wasn't solved through tax cuts, it was solved through rigorous government spending through new deal programs & ultimately military spending because of World War II.
Hence government pumping money into the economy through new deal programs, tax cuts do not necessarily pump money into the economy, as government is still apart of the economy, government spending will. This was the solution to the great depression.
Tax cuts aren't the end all & be all of government policy, sometimes new deal style programs are better suited to stimulate the economy. In fact the economy is so complex, that figuring out which will work better in any given situation is important. My beef with Republicans is that their solution is always tax cuts, they never think of any other way to stimulate an economy, and they are extremely one dimensional in their policies. Even when Alan Greenspan said in the past few weeks that further tax cuts would be pointless, Bush ignored him & wants him removed for that remark. I'll listen to Alan Greenspan on economic issues before any Republican, cause listening to republicans is like hearing an automated message... tax cuts... tax cuts... tax cuts... tax cuts... tax cuts...
About deficits & the debt, the debt is huge, monumental, I dont know what it was like back in 1929, maybe it was worse then, but the US government literally owes out trillions of dollars of money, and the interest takes up some 15-20% of our federal budget. Ultimately this has to be paid off eventually, through some really hard times. But now Bush is rapidly accelarating the debt, something that should be stopped forthwidth.
Hoover had some bad times in 1929, he wanted to maintain a balanced budget, but he later lost to Roosevelt, who promised the new deal programs to stimulate the economy. Tax cuts weren't really thought of as a way to stimulate an economy back then as much, social programs were.
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Last edited by Verona^My on Feb-27-2003 at 19:53
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