Still Keynesians at heart
Topics: Taxes
11 Jan 2008
From: Ervan Darnell
Democrats used to love deficit spending on the theory that it stimulated the economy.
But now that Bush has been doing that, I've lost track of how many times I've
heard Democrats criticize Bush for increasing the deficit. But with him still in
office, Clinton is proposing to do exactly the same:
>Democratic presidential contender Hillary Clinton on Friday will propose a
> $70 billion emergency spending package and possibly another $40 billion
> tax rebate to counter what she sees as a coming recession, according to the New York Times.
http://news.yahoo.com/s/nm/20080111/pl_nm/usa_politics_clinton_economy_dc_3
Of course, this is exactly the wrong thing to do, suck money out of the investment
market that would otherwise be used to create jobs and instead spend it to subsidize
unemployment.
Not that Bush is much better as is he proposing the tax cut side as a stimulus.
As always: so long as the government is wasting money, it's wasting money.
Whether we pay for it now (taxes) or later (deficit spending) is of secondary
significance to having wasted it in the first place.
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