Why Tax Cuts Fail

Trying to head off a depression with massive tax cuts is inefficient because:

  1. The poor spend their windfall at Walmart, stimulating the Chinese economy, but doing nothing for the North American.
  2. The middle class save their windfall. What else would they do on seeing their retirement savings and home equity evaporate and continued employment insecure?
  3. 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)