| Subject: Re: The future of our great nation |
Author:
Jeff
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Date Posted: 20:46:04 06/13/04 Sun
In reply to:
Ray
's message, "The future of our great nation" on 04:22:49 06/13/04 Sun
We did murder the economy, which is why there are huge inflation rates, an ever increasing unemployment, and GDP in decline. Wait.....no.
It seems to me, both parties have no problem with inceasing spending. Which some isn't too bad, but the pork we really don't need. It is very important for Nebraska to have a foot bridge across the Missouri to get to Iowa.
I'd have much perferred a tax cut to workers payroll taxes. But I'll take the cut Bush made. Either that money can be spent, allowing orders to go up, which leads to people haveing to work. Or it can be invested and people can put it in place into the workplace.
Debt isn't always a bad thing. Especially during times of recession. Why? cause no one is buying stuff. During those times the government can pick up the slack. They can give tax cuts, cut intrest rates, and spend more.
Then during times of surplus, its good to increase speniding. Why? Well lets see what happend, all the state budgets decided to increase programs during the surplus had huge debt they had to pay off. (state governments are more like households, which the federal government is not, since it controls the monetary policy.)
Another problem is that since businesses and people are speding all kinds of money, the more the govenrment spends the more likely inflation will increase. Which creates a lot of uncertainty in the market, which will depress it. In the end intrest rates will need to increase, which makes borrowing money very costly so capital imporvement projects will likely not happen. Capital imporevemnts not only take jobs to do, but they increase the capacity for jobs.
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