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The "fiscal stimulus" arguments
Posted by: McQ on Thursday, January 31, 2008

The irony, of course, is both sides of the political spectrum agree that the way to stimulate the economy is to0 do what one side has been pushing for ages - put more money in the hands of the citizens. Both sides agree that this "stimulus" is going to be short term because it is a one time payment which will be quickly spent.

So if the argument is we can stimulate the economy by putting more money in the hands of citizens (and consumers) and that is the best way to boost the economy, even short term, what does that say about a long term plan?

Uh, yeah - cut taxes (to include corporate taxes) and cut commensurate government spending and suddenly you have a long-term economic stimulus package.

But printing money to hand out?

Not such a hot idea.

Somehow, however, I have a feeling the long term lesson is lost in the smoke and mirrors of the belief that government is "fixing" a problem.
 
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Its an incumbant re-election bribe.

In the conspiracy theory domain, its also about the right amount of money to be able to buy a decent HD compatible TV just before the mandated switch in 2009.
 
Written By: jpm100
URL: http://
Um, it’s a stimulus because the government can borrow money more easily that the rest of us can. So the government borrows and gives us cash to spend. It has no long term implications because the loans do, in the long term, have to be repaid.
 
Written By: Retief
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