You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.

Latest

Greatest

Lobby

Journals

Options

Help

Reply #17: "deficit spending" - I'm not hostile, but that's baloney. [View All]

Printer-friendly format

Email this thread to a friend

Bookmark this thread

This topic is archived.

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010)

denem

(1000+ posts) Send PM | Profile | Ignore

Wed Nov-03-10 01:53 AM
Response to Original message

17. "deficit spending" - I'm not hostile, but that's baloney.

Edited on Wed Nov-03-10 01:54 AM by denem

In a recession you get deficits automatically.

The revenue base collapses. Yes, sales tax, personal income tax, payroll tax all fall -10% plus in this case.

But Corporate Tax? A 10% reduction in sales can take a profitable business to a loss, A 100% reduction in tax revenue.

So what is the Government supposed to do - Not spend? reduce Reduce spending?

Individuals and businesses are ALREADY reducing spending and investment - So you give the economy a triple whammy by reducing government spending as well?

What exactly do you mean by 'deficit spending'?

Printer Friendly | Permalink | | Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010)

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home | Discussion Forums | Journals | Store | Donate

About DU | Contact Us | Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.