Why Tax Cuts Fail
Trying to head off a depression with massive tax cuts is inefficient because:
- The poor spend their windfall at Walmart, stimulating the Chinese economy, but doing nothing for the North American.
- The middle class save their windfall. What else would they do on seeing their retirement savings and home equity evaporate and continued employment insecure?
- The wealthy invest their windfall in parts of the world where commerce is still bubbling along happily.
It would be better to target efforts on creating and sustaining jobs.~ Roedy (1948-02-04 age:70)