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Old 02-05-2008, 06:34 PM   #925
Tyrone Slothrop
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Join Date: May 2004
Posts: 33,084
Crowding out

Quote:
Originally posted by sebastian_dangerfield
It is quite amusing, however, that Democrats agree the best way to stimulate the economy in the short term is to give people back taxes they've paid.

Might the better way be to decrease spending on domestic entitlements and pork and end that silly war and let the people you're giving that money back to have it all along?

I know, I know... But like I said, every cynic is a hopeless, naive idealist at heart.
Economists generally agree that the best stimulus is to put money in the hands of people who will go spend it. The poorer the recipients, the more likely they are to spend it.

Cutting government spending in the way you describe may make sense for other reasons, but not for short-term economic stimulus.
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