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To: Eva
You can't deny that the business cycle was given a shot in the arm from the tax cuts.

Eva, yes I can deny that because it is not true. You probably do not know what exactly the business cycle is--I take it that you have no formal background in economics.

Spending was given a boost by tax cuts, not the business cycle. Business cycles, by their very name, are CYCLICAL, which implies longer trends pre and post-tax cuts. Also, as I said in previous posts, the USA represents only 20% of the world economy. Even a tax cut in the USA can't prevent a recession if 80% of the rest of the world were to have tax increases (hypothetical). The fact is the global economy has more sway over the global business cycle than what a tax cut has in a nation (the USA) that represents only 20% of the world economy.

Tax cuts are a good thing--we agree. But it is not true that "a tax cut gives the business cycle a shot in the arm".

64 posted on 11/17/2005 8:52:49 AM PST by Dont_Tread_On_Me_888 (Bush's #1 priority Africa. #2 priority appease Fox and Mexico . . . USA priority #64.)
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To: Dont_Tread_On_Me_888

Business cycles sound intriguing...I once had a landlord who said they were important, but he didn't tell me much about them.

How many years in a typical business cycle?
Is this business cycle proceeding at a typical rate?
Are we at a high low or middle point in this business cycle?
In which direction is the business cycle heading?
When will the business cycle next hit bottom ?
What will be the warning signs that the cycle is about to hit bottom?


118 posted on 11/21/2005 1:14:21 PM PST by syriacus (I'll take our success at liberating Iraq, over the "world community's" success at containing Saddam.)
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