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Is government spending a more effective stimulus than tax breaks?

Asked by: twocupcakes
  • Growth factor How big government helps the economy take off http://www.boston.com/bostonglobe/ideas/articles/2008/09/07/growth_factor/?page=full

    The claim that government spending is not more effective than tax breaks shows a complete lack of knowledge about American history.
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    “Early America created a national bank to maintain its finances and currency, critical to a smooth-functioning modern economy, at the instigation of Alexander Hamilton, George Washington's treasury secretary. Under Thomas Jefferson, well-known for his laissez-faire sympathies, America bought the Louisiana territories in what amounted to a large federal spending program. He thus provided cheap land to farmers at federally controlled low prices, enabling them to feed themselves and the nation, but also soon to produce surpluses to feed Britain as well, adding to America's wealth.”
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    “The federal government financed much of the railroad development of the second half of the 1800s through massive provisions of land. The tens of thousands of miles of railroad created the nationwide marketplace that made possible America's first industrial revolution. Similarly, in the 20th century, the federal government built roads, dams, bridges, and, after World War II, the interstate highway system, which were the building blocks for the huge commercial growth of postwar America.”
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    “It invested in research and development through the Defense Department, accounting for most of such spending in the nation in the decades after World War II. America sent its returning GIs to college, again raising the educational level of its workforce, and provided low-interest loans for their children to go to college as well. It aggressively subsidized medical research and education.”
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    “Throughout the 1950s and 1960s, taxes rose as a proportion of GDP, and the economy only grew more rapidly. Family income doubled in two decades, adjusted for inflation, even as more new social programs were funded. This was, in fact, true of all the developed nations of the West.”
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    It has been over 30 years since the huge tax breaks given to the Plutocracy, the super wealthy, by President Cowboy Ronnie - Borax soap – Reagan. America has yet to receive Reagan's promised trickle-down economics. The wealthy have just horded their wealth and outsourced over 20 million jobs to third world countries so they can get more dividends.
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    The Federal Government needs to create a trillion dollar project rebuilding America’s infrastructure (road, bridges, etc.). Then it needs to pass laws forcing all companies to bring back over 20 million jobs that have been outsourced. Then our economy will take off, and the destruction of the middle class and poor will be stopped.

  • No, government spending is just wasting dollars.

    Tax breaks allow individuals and businesses to use their funds efficiently and effectively. The tax payer can use the money for stuff they need or luxury items that they may want to enjoy. If we allow government to use the money, more often than not, they will waste it on useless projects or purchasing worthless items. Like TSA just purchased 1.5 billion bullets for no particular reason. They are an enforcement agency not a military force. For comparison, the armed forces in Afghanistan use 2 million bullets per month. The TSA bough enough bullets to last 2 years in an armed conflict. That is the definition of wasteful spending.

  • Government spending is not a more effective stimulus than tax breaks.

    Government spending can or can not be an effective stimulus as the projects the government spends on may not benefit the community at large. Government spending is what got many states in debt in the first place, as money is poured into projects that are deemed unnecessary and non beneficial. Tax breaks on the other hand allow one to save money that is best spent elsewhere and on what the individual decides on what to spend it on rather than a large governing body to decide what is best to spend it on.

  • Government spending is not a more effective stimulus than tax breaks.

    No, government spending is not a more effective stimulus than tax breaks. Tax breaks, especially across the board ones, allow consumers to keep more of their own money and spend it as they wish, spreading it throughout the economy at a much faster rate. Government spending can only be targeted in certain areas, making those that work in those fields winners and all the people that have to pay for that spending with increased taxes, losers.

  • Not If We Attach Tax Breaks to Proven Job Creation

    Tax cuts to promote economic stimulation should be targeted tax cuts to make the most of it. They should target people who prove that they are creating jobs. Otherwise it's pointless. All that money will just go to China. We should require the proven creation of American jobs or else you get no tax break.


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