[Rhodes22-list] Politics- reply to Rummy on Steve's Comments

[ed kroposki]

Mr. Rummy:
	The U. S. economy is not a television set.  When changes are made to
tax laws it sometimes takes years for the full effect to be realized.  Then
there are events that seriously affect the economy that have nothing to do
with tax policy.  Add to that what is called the 'business cycle', which is
something that happens, like shit.
	Reagan asked Congress for and finally got income tax cuts.  Some
called this 'Voodoo' economics.  However, what happened is that it put more
dollars into spenders' hands.  What occurred next is called the 'multiplier
effect'.  That is when the spenders spent their first dollars; the
recipients in turn spent additional new dollars received from the first.
This happened many times over.  The net result was increased spending over
the next few years.  The increased spending meant that more tax dollars were
collected resulting in a lower Federal debt or assumed surplus during the
Clinton years.  Clinton had no major events that occurred resulting in his
needing to request more money from Congress, so the appearance of him
leaving an almost balanced budget.
	Low and behold, two events occurred that changed the situation.
First, the tech bubble and second 9-11.  The tech bubble problems were
occurring during the last 18 months of the Clinton 2nd term.  The evaluation
of stock plummeted down.  In truth, the stock and companies involved were
over valued, and when one fell, it had a domino effect.
	911 occurred after Clinton left office during the down sliding
business cycle exacerbated by the tech stock bust.  911 can only truly be
analogized to 'Pearl Harbor'.  The anti war sentimentist would have waited
for the next attack.  However, Bush appreciated the nature of his enemy and
retaliated.  He next continued his aggressive policy by attacking another
troublemaker.  
	These actions costs lots of money, plain and simple.  They have
resulted in an increased national debt.  To stop the downward business
cycle, Bush asked for a tax decrease.  That is put more dollars into
circulation, which in the end increases tax collections.  At first, a tax
cut increases debt because it initially looses revenue.  However, once the
dollars from the tax cut are in the hands of spenders, they will eventually
result in increased tax collections because more people use the dollars.
Simply put the people spend those dollars.  Ask Stan if he sold more boat
since the Bush tax cut or the year before the tax cut (I do not expect him
to publicly admit such).  
	The above is what Steve is trying to say in his acerbic manner,
which you people attack rather than try to understand.  

Ed K
Greenville, SC, USA  

-----Original Message-----
From: rhodes22-list-bounces at rhodes22.org
[mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of
R22RumRunner at aol.com
Sent: Wednesday, November 24, 2004 1:02 PM
To: rhodes22-list at rhodes22.org
Subject: Re: [Rhodes22-list] Jesusland.

Steve,
Please correct me if I'm wrong, but as I remember history, when Clinton
Gore 
took over, the country had a huge deficit and national debt. It took 8
years 
to get this country back on an even keel and we actually had a surplus  when

W took over. Seems to me that he destroyed in less than four years what
this 
country had gained in the previous eight.
Saying that a national debt is a good thing is just like the credit card  
company's trying to send me more cards.
 
Rummy
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