When TRUMP wins...

yep. nobody likes constipated congress

Flip Flop

climber
Earth Planet, Universe

Nov 9, 2016 - 05:25pm PT
Trump minus 9 months equals Hitler. Lollity

1/20/46 minus 9 months is 4/20/45

Werner, what say you?

Edit

This is an example of why American President Obama resonated with the rest of the Planet. He took the high road.

The Secret of Tax Cuts and Economic Growth
The supply-siders keep saying tax cuts will cause so much economic growth that it will reduce the debt. And it keeps not working. But they’re half right. It has long been know that tax cuts can stimulate the economy, especially in a recession. Here’s how that works.

Say the government reduces taxes by $1 billion per year, but does not fire anyone and does not stop buying anything. Then no one that sells to or works for the government loses their job. But taxpayers have an extra $1 billion in their pockets and they spend most of it. Businesses sell more and so they hire more workers.

But how can the government keep spending without that $1 billion in taxes? Simple, they borrow the $1 billion. So yes, tax cuts cause growth and INCREASE the debt, if the government keeps spending. And that’s what’s been happening.

So a tax cut that creates debt is a good thing in a recession. In fact you could cut everyone’s taxes in half and you might have hired and extra 6% and ended the Great Recession very quickly. But with 6% more workers and everyone paying half as much tax, no, you will not increase tax revenue. You will increase the debt.

But that’s a good tradeoff. Unemployment is quite wasteful for society and costly in many ways for the unemployed. The trick is to pay down the debt once the economy is humming again. The graph shows Bill Clinton did that and Obama is headed that direction, but Reagan and the Bushes didn’t. That’s because they believed in the Voodoo — cut taxes and tax revenues will increase. No need to worry about the debt. So they didn’t.