CBO Director Doug Elmendorf testified before the Senate Budget Committee today and dropped something of a bombshell. Extending the Bush tax cuts, he said, will "probably reduce income relative to what would otherwise occur in 2020." The reason is simple: Debt.
Cutting taxes does not stimulate the economy, in theory and in fact.
"The less you extend the tax cuts, the less damage you do to the economy." Please read this everyday until the elections. The GOP must be stopped.
1 comment:
This analysis is awesome. I thought I understood economics, but I realized I was too simple-minded. Now I know:
- Tax cuts are bad because they will increase the national debt and crowd out privated investment a decade from now, even though they increase GDP and reduce unemployment now per the models.
- Stimulus spending is good because it increases GDP and reduces unemployment now per the models, even though it also will increase the national debt and crowd out private investment years from now.
I don't understand why those morons on the right don't get this.
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