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To: elfman2
"I think more spending does equal "good for the economy""


That's the part I can't figure out; you seem to realize on one hand that this line is not from the Supply-Side Playbook and yet you still wrote it but want me to pick a point to debate. I would not know where to start.
69 posted on 08/20/2003 9:48:22 AM PDT by JohnGalt (For democracy, any man would sacrifice his only begotten son)
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To: JohnGalt
" That's the part I can't figure out; you seem to realize on one hand that this line is not from the Supply-Side Playbook and yet you still wrote it but want me to pick a point to debate. I would not know where to start."

Maybe this is just a miscommunication. I don't know if this tax cut will impacts the spending of shaken consumers. But I'm not aware of anything inherent to supply side theory that contradicts the understanding that a shaken economy suffers from a kind of chicken or egg circle, with industry resisting hiring until consumer spending recovers and consumers resisting spending until the job market improves and around we go again. That's not the full story, but it's reasonable to believe that it's a subplot.

I don't know why a supply sider would disagree that more consumer spending is good for the economy. Internet bubble pops, democrat demagoguery and terrorism have a huge impact on behavior. Behavior of consumers as well as investors is not entirely rational, and when the confidence and activity of either is high, it's good (unless it's fanatically high).

76 posted on 08/20/2003 11:13:45 AM PDT by elfman2
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