The Stimulus Package

[Bond]

Originally Posted by Professor S

Bond, why do you think fiscal conservatives have such a hard time making the argument that you did? It's so straight forward and simple when you put it in those terms. Do you think politicians are simply afraid that people won't understand the tax cut argument beyond the immediate affect to their pocket book?

Your guess is probably as good (or better) than mine. I do have a few ideas, though.

For one, I don't think most people want to deal with quantitative graphs, the distinction between tax rates and tax revenue, real numbers adjusted for inflation, etc.

Secondly, most of our politicians are lawyers, from liberal arts backgrounds. I would have to assume few understand economics. It's very complicated, and I only have a very basic understanding. As you go into more complex economic theory, the conclusions that are drawn become more and more subjective. But, I think it is possible to arrive at at least a few fundamental truths, at the most basic level, which the graphs I posted illustrate.

Also, economic discussions (really arguments) in politics always boils down to class warfare rhetoric, which is neither helpful, nor accurate. Each part of an economy depends on the other part: rich depend on poor, poor depend on rich, etc. The graphs are evident of this. The goal of economic policy, in my opinion, should always be to create the most wealth within the society (as I believe the creation of wealth is unlimited). Once you understand we are all interconnected, and all need to work toward wealth creation, there is no reason to hate thy neighbor, whether they be rich or poor. But that's just my view.