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

[Steve]

I wish I could write that good, Ed.  Well put.  I
guess I just spend to much time analyzing numbers.
Steve


--- ed kroposki <ekroposki at charter.net> wrote:

> 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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