"Taxes? Cuts? To economy, it's all the same" -- Idiocy!!!!

Posted by: TomC

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Taxes? Cuts? To economy, it's all the same, Paul Anton's contribution from today's Strib, is idiotic!

Specifically, what difference would it make if the budget deficit were closed through a combination of tax increases and spending cuts, rather than through an all-cuts budget?

Based on the applicable economic theory and available evidence, my answer is: Whichever budget solution is chosen will make little, if any, difference to the Minnesota economy over the next two years.

He makes equal a dollar spent by government and the private sector, which could only be true if those dollars just appeared out of nowhere instead of being extorted and earned, respectively. This is the zero-sum nonsense that is prevalent that has never made sense to me.

Most dollars that the private sector acquires (I started out saying "All dollars", but these days of government meddling in the private sector inhibit my saying that) are earned by providing goods and services that are desired through the voluntary exchange of dollars for those G&S. Wealth has been created.

In contrast, the government consumes, it does not create wealth. Only the government can legally use force to extort the funds it uses to operate from the wealth-creators who earned it. Government then might use those funds for legitimate exchange of G&S, but not necessarily. Just because the government spends money it does not mean it positively influence the economy. If that were the case, Nancy Pelosi's statement that extending unemployment payments to non-workers has a positive influence on the economy would also make sense. It is equally idiotic.

 

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Barthélemy Barbancourt
The guys ignores tons of evidence
written by Barthélemy Barbancourt , May 21, 2011

Every state that has enacted a millionaire's tax has seen revenue drop from the highest income tax payers.

The states with the lowest tax rates have created the most jobs in the last 10 and 20 years. Texas has a far better economy that MN.

Finally, any existing government program will continue to grow faster than tax revenues. This has been a fact for over 40 years. If we balanced the budget this year with only tax increases, demographics combined with bloated govt. programs and slower growth would ensure another deficit next year.

There are lies, damned lies and statistics and I'd say his study is complete bullshit.




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