Tbar220 From United States of America, joined Feb 2000, 7013 posts, RR: 23 Posted (14 years 8 months 1 week 3 days 10 hours ago) and read 901 times:
Tell me what you think on this.
The GDP growth level for the past quarter was 0.2%, the lowest since 1993.
In an online article that I read online, the following was said...
"Private economists and the Bush administration are counting on nearly $40 billion in tax rebate checks and the aggressive credit easing by the Federal Reserve (news - web sites) to lift the economy to higher growth rates in the second half of this year."
Now I'm not looking at this as a Democrat or a Republican. But I took economics last year, and I don't see how the tax cut can affect the economy that quickly. Perhaps I'm wrong, but I think these "private economists" are being a little too optimistic here.
Tbar220 From United States of America, joined Feb 2000, 7013 posts, RR: 23
Reply 5, posted (14 years 8 months 1 week 3 days 7 hours ago) and read 873 times:
True Mx5, theoretically speaking, a tax cut will boost the economy. In a perfect world, that will always work. A tax cut increases investment and consumption, thus driving up GDP.
Yet in todays world there are many other factors, many, many factors that we cannot begin to contemplate. And from history, I think it takes longer for a tax cut to actually affect the economy than a single economic quarter. And if the economy is worse than predicted, a tax cut may not do any good if it is not enough (that is a whole 'nother argument, some thing the tax cut is too much, some think its not enough, lets not get into that).