Bleckonia wrote:Heraklea- wrote:There is a difference between reducing taxes to moderately stimulate growth and slashing taxes. Government spending increases economic growth at a greater rate than the cutting of taxes. Ensuring the government has the base needed to spend in that manner is way more important than ensuring the rich have even more money to save, and that is exactly what the vast majority of that money would be used for - savings.
Trickle down is bullshit that gets spoon fed to the poor to make them think they're winning when the government cuts taxes. It's a fantasy designed by the same pack of hustlers that want to destroy all government regulations pertaining to safety, collective bargaining rights and pollution in order to further pad their bottom line. These same people would want to abolish the military and the police in favor of PMCs and private security firms if those same groups didn't provide such huge sources of sales. It is at the very core of anarcho-capitalist thought.
Where Keynes went wrong, however, was demeaning savings. While it is true that direct government spending has a larger multiplier effect in the short run, every dollar of savings eventually translates into a dollar of investment, which has an even higher multiplier effect than does government spending (because there is more "leakage" in government). Really, the only difference is that government spending may work more quickly than savings, but even then, government spending lags.
Furthermore, taxing capital gains and income at a high rate will reduce direct investment, which also reduces aggregate demand. So if you're so concerned with improving the economy, do your stimulus thing but also keep taxes low in order to ensure that the private sector can contribute to healthy growth.
And your entire argument in the second paragraph is a strawman and an ad hominem attack. Not every person who wants low taxation wants to abolish the military and all regulation. You're right that pretty much all anarcho-capitalists believe in low (or nonexistent) taxes, but not all people who believe in low taxes are anarcho-capitalists. Likewise, all rectangles are squares, but not all squares are rectangles.
"Trickle-down" economics may be pushed by some people who want to pad their bottom line, but the reason I and some of the opposition are pushing it is that it is the healthiest way to grow our economy, which will benefit all Calaverdeans, not just the rich.
As I demonstrated in my previous post, you want to impose huge tax increases on the poor (who have a high marginal propensity to consume), while imposing huge tax cuts on the rich (who have a lower marginal propensity to consume); the net effect of your proposal to cut taxes for the rich while increasing taxes on the poor will have a net negative effect on economic growth.
The wealth isn't going to trickle down. That has been tried for the past 3 decades all over the world and has not worked.



