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It's all the Keynesian economist. This would be the opening of the faucet. Once the economy is back up and running then you tax like crazy to make up for bleeding money.
There is suppose to be a multiplying effect of 1.0-2.5 for infrastructure spending. Also the same is "true" of purchasing of goods and services by the federal government. The problem is that too much spending can a crowding out effect.
In the other direction, substantial government spending
can cause a shift in resources (including employees)
away from production in other firms and sectors to
government-funded projects. That indirect crowdingout
effect could cause growth in employment among
recipients of ARRA funding to be offset by declines in
employment elsewhere in the economy. Increases in
interest rates are one mechanism for such crowding out:
Higher interest rates discourage spending on investment
and on durable goods such as cars because they raise the
cost of borrowed funds. However, that mechanism has
not been an important factor this year because the Federal
Reserve has held short-term interest rates at very low
levels. Activities funded by ARRA could also reduce production
elsewhere in the economy if they used scarce
materials or workers with specific skills, creating bottlenecks
that hindered other activities. That effect, too, has
been much smaller this year than it might be otherwise
because of the high unemployment rate and large amount
of unused resources (as well as the diversity of activities
funded under ARRA). In estimating the size of such indirect
effects, CBO relied heavily on estimates from macroeconometric
forecasting models, informed by evidence
from other types of models and from direct estimation
using historical data.
The CBO is publicly funded and there should be no copyright violations.
in the late 90s and early 00s, liberals would stress how we need to increase home ownership for the poor. (via a fannie/freddie & making banks have certain % of sub prime type loans) now that's obviously blown up
now there's a mess, and what's the solution? more government spending.
More government begets more government, which begets more government
in the late 90s and early 00s, liberals would stress how we need to increase home ownership for the poor. (via a fannie/freddie & making banks have certain % of sub prime type loans) now that's obviously blown up
now there's a mess, and what's the solution? more government spending.
More government begets more government, which begets more government
Well the left's mantra was "all the right talks about is cut taxes and less government." Now everyone gets to see their deeds and if they match their words. More government, more spending and higher taxes. The higher taxes hasn't happened yet but will as soon as things turn around, if they do.
in the late 90s and early 00s, liberals would stress how we need to increase home ownership for the poor. (via a fannie/freddie & making banks have certain % of sub prime type loans) now that's obviously blown up
now there's a mess, and what's the solution? more government spending.
More government begets more government, which begets more government
Makes you wonder why they didn't go the Jimmy Carter route and have them all build their own houses and then have to pay for them, Habitat for Humanity. But, unfortunately a lot of people don't want to work for anything. I personally know someone who worked part time for me. She had an oppurtunity to do this, but working 40 hours a week for two years was just too much for her. She currently lives in government housing.
Well the left's mantra was "all the right talks about is cut taxes and less government." Now everyone gets to see their deeds and if they match their words. More government, more spending and higher taxes. The higher taxes hasn't happened yet but will as soon as things turn around, if they do.
the more government you have, the more government you will need to cleanup the governments mess.
the sad thing about the housing crisis, is many americans don't even realize how the government created it.
suckers.
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