While my 'dumber than I thought I was' comment was made tongue-in-cheek, it is true in many areas, however, I'm sure that on this issue, I'm neither dumb nor as gullible as the Republicans take many people to be.
The traditional 'true and tried' method of tax cuts to stimulate the economy has been 'tried', the latests are the past Administration's ones and the only 'true' of it is that it benefits mostly the rich, they don't create jobs and they sink the country as a whole in a deeper economic hole, specially when it comes to Corporate Tax Cuts which are nothing less than Corporate Welfare.
The part that I don't get is how the Republican-following sheeple believe that tripe, I mean, you give money to the corporations for what? To produce more? Yeah, right, they are going to create jobs to produce more and provide more services for the people from whose pockets these tax cuts come out from to buy them? Ha!
I'm nowhere near to knowing how the economy works, but it seems to me that if the consumers have monetary resources, they will purchase products and services, if there is no supply, the demand will compel the companies and corporations to fill that need by increasing production, which in turn will trigger a need for more employees to meet the demand, which in turn will place resources in the employees' pockets adding them to the consumer base, which in turn will increase the demand. which in turn....
By the way, the employees will have to pay taxes.
Simplistic? Of course it is, but according to 'supply and demand', that's how it works, isn't?
It is not that tax cuts do not stimulate the economic activity, they do, albeit modestly, they do, but it does make a big difference who receives them.
No, I'm neither dumb nor gullible on this issue, I'm no economist and do not have the expertise on it to clearly eleborate on this matter, but today I got reinforcement for my beliefs while watching the "Rachel Maddow Show" where she gave information she got from Moody's Economy.com, here is the basic lowdown on "Most Stimulative Spending", in other words, the returns for each dollar spent:
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| Food Stamps = $1.73 Infrastructure = $1.59 |
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| Tax Cuts = $1.03 Corporate Tax Cut = ¢ 0.30 |
| And this is the video where she explains it all and asks pertinent questions, very interesting segment. |
Visit msnbc.com for Breaking News, World News, and News about the Economy |
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