Raising Taxes / Cutting Stimulus
Same effect for either, reduce GNP and reduce Deficit. By the same token, Reduce Taxes or increase Stimulus, same effect for either, raise GNP and raise Deficit. A very simple relationship that is a choice for the people of the country. The real question is not the effect but who it affects. Raising taxes hits the upper classes the hardest, reducing stimulus hits the low and middle classes the most.
It is interesting that the “TEA PARTY’ movement is more or less an anti-tax, anti-stimulus movement or in reality once one does the math, is a net nothing for the economy in total, and in terms of changes, helps the upper class and hurts the low and middle classes. I wonder if that is what they want? Maybe they do, the political and cable show leaders they love want that change.
The middle class had better figure out what is happening. Probably a real “TEA PARTY” that is a real middle class revolt and includes both conservatives and progressives could force real change to occur.
We will go into the Tax/Stimulus/Deficit issue at much greater length and include some charts over the coming weeks.