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Econ 101
Increasing taxes may slow the economy some, and in the short term, government spending spurs the economy. But in the intermediate term, deficits and accumulation of debt create a drag on the economy, which Bush had made nearly critical. So a balance must be struck. We must decrease the deficits. We won't accomplish that with tax cuts. Tax increases will help, but only if tied to curbed spending.
But don't be surprised that Obama understands economics. Be a bit surprised if McCain does, as he has said he doesn't. And remember that taxes are never an equation by themselves. Fiscal policy includes taxes, among other things, and the economy is affected by much more than tax policy. Tax policy has only a small effect on the economy as a whole.
posted by
mousehop
on September 8, 2008 at 2:23 PM
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