RE: Cutting Taxes to Spur the Economy

From: Lee Corbin (
Date: Sat Jul 05 2003 - 23:27:25 MDT

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    Dossy writes

    > On 2003.07.05, Lee Corbin <> wrote:
    > > However, upon talking to yet others, I have been subsequently
    > > thinking (perhaps mainly only in my mind, after all, like normal
    > > people) that the phenomenon of wealth creation, in a number of
    > > circumstances, indeed can be advanced by tax cuts, and perhaps
    > > even by printing more money! How is this possible?
    > Sey's law: Supply generates its demand. Give people money and they'll
    > find a way to throw it away--err, spend it.

    It's "Say's Law",

    > Most people don't know how to save money. If they don't have to give it
    > up to the IRS, they'd give it to someone else.

    It's true that most people do not know how to save money,
    and this is very bad for them. However, my questions are

      1. when should government print money
      2. when should it reduce taxes *in order
         to* stimulate growth".

    > So, tax cuts really is an alternate form of taxation: instead
    > of people giving their money to the government who then has the
    > burden of budgeting

    "burden", yeah right ;-)

    > and distributing it out to government organizations, a tax cut
    > effectively cuts out the government as the middle-man and sends
    > that money directly back out into the economy.

    A nice generalization, but not always true. What about the
    times that government projects, usually infrastructure, end
    up creating wealth in the long run?

    But the real questions, to me, are above.

    Damien's 2 cents: "Lee Corbin Keynes reinvented the pump-primer."

    Well, then, Mr Charitable, please enlighten me further: when
    ought the pump to be primed? Why not all the time?


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