Thursday, August 18, 2011

IF ALL DEFICIT SPENDING

IS STIMULATIVE (WHICH IT IS) THEN WE HAVE A POLICY PROBLEM - BECAUSE THIS STIMULATIVE SPENDING ISN'T DOING ANYTHING, maybe because its being spent on all the wrong things. Defense junk, subsidizing the old, the inefficient, yesterdays' energy, big agra-business. Since 1981 the US has run deficit spending for forty years. How bad has capitalism failed & this give away to the wealthy class been that it has produced very weak growth.
Chart - annual defiicts / growth rate / fed % vs gdp / employment rate / size of the wealthy.
TAX CODE CREDITS/DEDUCTIONS ARE ALSO DOING LITTLE.
In essence, through the tax code, the USA continues to subsidize those with connections, old technology and the dismemberment of America. Why invest in a business when one can get a better return through the tax code without doing anything.

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