Re: Noted Keynesian Gleeful Over Bombing?

From: Mike Lorrey (
Date: Tue Sep 18 2001 - 11:25:00 MDT

Harvey Newstrom wrote:
> I have already heard sound-bites from Republicans about needing a Capital
> Gains Tax and further tax rebates to respond to the terrorist attacks. They
> also have said that this might tip us into a recession, and that we might
> have to dip into Social Security funds to keep the government running. All
> of the things that were planned before the attack are now being blamed on
> the attack.

Actually, the rationale for the Capital Gains Tax is to INCREASE tax
revinues by stimulating more market activity. They also, you didn't
mention, want to couple this with a rise in the minimum wage since the
past several increases in the minimum wage have proven to be
non-inflationary in impact. The Democrats are all for this, though a
side effect of this will be that more small businesses will be forced to
employ prisoners, who are not subject to minimum wage protections.

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