Re: ARE AMERICANS STUPID????

Pete nospam Zakel wrote:

> In article <[EMAIL PROTECTED]> Eric Johnson <[EMAIL PROTECTED]> writes:
>
>
> > On 29-11-2003 08:26, in article [EMAIL PROTECTED],
> > "Al Lewis" <[EMAIL PROTECTED]> wrote:
>
>
> > > > Tax cuts, 
>
>
> > > which have proven ineffective
>
>
> > What was that GDP report from last week? 8.2 % growth? And the quarter
> > before that? Also big growth.
> >
> > What part has been ineffective?
> >
> > The market is also up 10-15% as well this year.
>
>
> Logical fallacy of "post hoc ergo propter hoc".
>
> The economy was going to recover at about this point regardless of the tax
> policy, although tax policy might affect the size of the recovery.
>
> But I think fed lending policy is much more relevent.
>
> It's impossible to know what the economy would have done without the tax cuts
> without changing history.  So all we can do is speculate.
>
> -Pete Zakel
>  ([EMAIL PROTECTED])

I think the economic growth of the 80's is proof that cutting 
confiscatory taxes stimulates the economy.  Furthermore, the increase of 
taxes under George H. W. Bush ("Read my lips...no new taxes") and the 
subsequent increase under Bill Clinton ("I've worked harder than I ever 
have to keep from raising taxes...") lead to the stagnation in the mid 
90's and eventual decline of the economy at the end of Clinton's term.
While economy's are cyclical, a recovery without the stimulation caused 
by tax reduction would be minimal and hardly noticeable.  The dramatic 
increase in the 3rd quarter and it's apparent staying-power in this 
quarter are once again proof that lower taxes stimulate the economy by 
giving the citizenry more expendable cash to invest and trade for 
services and goods.
This will, in a short amount of time, lead to the creation of new jobs 
and increased revenue for the federal and state governments as more of 
the population are receiving paychecks and, as a result, having to pay 
taxes on that income.  This is basic economics.

I do have to say that I am disappointed to see George W. Bush increasing 
 federal spending on various social programs as he is cutting the 
taxes.  Just imagine what the economy would be like if the government 
only took care of defending this nation from threats, both external and 
internal, and allowed churches and charities to manage the care of the 
poor and needy.  Taxes would not need to be so high, charitable giving 
would be at record highs (the 80's give proof to that...when people are 
allowed to keep more of their money, they are more willing to give to 
charities), more money could be invested into our military (this would 
mean that the men and women who defend us would receive a pay worthy of 
the nature of their service), private funding for scientific research 
would escalate (this could produce a drop in prices for prescription 
drugs)...the possibilities are endless.
Let's keep the tax cuts rolling and cut the spending at the same time.

Ron