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  • 3
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  • LindaLu
    7:30pm - Thu Aug 18th, 2011
    Dunce
    Chris,
    You don't get it. Corporations are sitting on trillions of dollars but they're not hiring. They don't have to because they need to make a profit. Lowering taxes for the middle class keeps more money in the middle class to spend. The government doesn't need to make a profit. Simultaneously, if the government spends on roads, bridges, etc, we get the infrastucture improvements we really need, there are more jobs, for the middle class and therefore more money to spend, to buy houses etc. It's a circle. Check your history about FDR and the Great depression including the CCC (civilian conservation core).
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • AJDuck
    9:41pm - Thu Aug 18th, 2011
    Dunce?
    True, you are not bright enough to understand economics. But you are brighter than any of the Republican Presidential Candidates, because you are bright enough to ask the question.

    We should do one thing in the short term, and another thing in the long term. In the long term, we need to balance the budget. But we face high unemployment right now, which is holding down the amount of tax revenue we are receiving. With 10 to 20% of potential employees idled, it will be very difficult to balance the budget. First, we need to get the economy growing again.

    When the economy is growing, nearly everyone who wants a job has one. They spend their income, and provide businesses with customers. Businesses hire additional employees to meet the demand, who now have income and become customers for other businesses. These businesses hire additional employees, and the cycle continues. This is the way the economy should function, and the additional business activity provides the government with additional tax revenue, allowing us to balance the budget. Think back to the Clinton Administration. It works.

    But right now, we have high unemployment. Because businesses have fewer customers, they lay people off, creating higher unemployment. This reduces the number of customers for other businesses, so they have to lay people off. This downward cycle reinforces itself and continues to drag the economy down. Right now businesses have cash, but are not investing and hiring because they have no customers. And because economic activity is low, tax receipts are low.

    So how do we fix it? The government needs to deficit spend, and hire people, say to build roads and bridges, or do medical research, or anything else that would help the entire country. By putting people to work, they would provide customers for businesses. Businesses would then hire people, who would be customers for other businesses who would hire more people. The cycle would now be going upward, instead of down. This would increase tax receipts. Once the cycle is going upward, the government can cut back on spending and increase taxes, and balance the budget.

    So, we need to create jobs, even if that requires deficit spending in the short term. But we will need to balance the budget in the long term, once we get the economy growing again. (Just like we did 10 years ago. But this time, we need to use the budget surplus to pay down the government debt, not give a bunch of tax breaks until we have the debt paid off.)
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • LindaLu
    7:22am - Fri Aug 19th, 2011
    Reply to AJDuck
    Well said.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }