That's the key all right. But in whose pockets? Counter-cyclical tax cuts and government spending increases are standard Keynesian economics. But these are supposed to be middle-class tax cuts which stimulate private spending. Large tax cuts for wealthy individuals were supposed to stimulate business investment (and job creation). The authors argue that they didn't.
I'm thinking of a hurricane that begins with a "K."
Government spending hurts the economy. It never, ever helps it. Any dollar that you pull out of the economy and put in the public sector hurts our economy,and it is as simple as that.
That's the key all right. But in whose pockets? Counter-cyclical tax cuts and government spending increases are standard Keynesian economics. But these are supposed to be middle-class tax cuts which stimulate private spending. Large tax cuts for wealthy individuals were supposed to stimulate business investment (and job creation). The authors argue that they didn't.
However, Larry, we should keep in mind that the terms "middle class" and "wealthy" are used by Democrat demagogues as class-warfare labels that totally miss their logical targets.
The taxes we are talking about are income taxes.
The truly wealthy do not have income taxes that amount to much. THE TRULY WEALTHY DO NOT HAVE TO WORK!
Take, for example, John F. Kerry and myself.
I came to this country in 1960 at age 6 as a Cuban refugee with nothing but the clothes in my family's suitcases. My father died when I was 16. I worked and paid for my own way through college, went through medical school with a U.S. Navy scholarship that cost me 8 years of active duty military service, worked my @ss off for the next quarter century after medical school graduation and now, working six days a week, I earn enough money to be called "The Wealthy" by the likes of John F. Kerry.
By comparison, John F. Kerry was born with a silver spoon in his mouth, married a woman worth $300 million, divorced her and then upgraded to a woman worth $750 million dollars.
Yet, I pay more INCOME TAXES per year than John F. Kerry, who is living a $750 million lifestyle, pays!
John F. Kerry is "Wealthy".
I am merely a middle class workaholic.
Yet, I pay more money per year in income tax than John F. Kerry does.
Income taxes do not hit "The Wealthy".
Income taxes just allow the truly "Wealthy" to live off their capital relatively tax-free while the rest of us who HAVE to work end up getting the shaft.