Reply #9: Robbing Peter to pay Paul.

[expatriot]

Or in this case, robbing the poor to pay the rich. Tax cuts do not help the economy since for every dollar the government does not collect is a dollar they have to either reduce in spending unless they borrow it. Now, deficit spending can give a temporary boost to the economy much like racking up credit card bills can give the "appearance" that a household's finances are prosperous.

But deficit spending aside, it is a zero sum game. That x amount of dollars is going to be spent on or invested in something no matter who has it. If Bush cuts my taxes by $1,000 I can purchase a nice computer and that $1,000 leaves my hands and enters into the economy via the computer company but that is $1,000 less the government has to spend on a computer for some kid in some federal education program . It has the same direct economic impact but instead of leaivng my hands and entering the economy through the computer company, it would go from the governmetn and into the economy through the computer company. The only difference is who benefits. IF I buy the computer for me, I benefit. If the government buys the computer the disadvantaged kid benefits and therefore the longterm economic benefit to society is greatly expounded.

I am going to bed.