"The worst deficit comes from a recession. And if we can take the proper action at the proper time, this can be the most important step we could take to prevent another recession – that is, the right kind of a tax cut. Every dollar released from taxation that is spent or invested will help create new jobs.
--President John F. Kennedy
1 comment:
You've succeeded again in missing the whole crux of Kennedy's argument. It's the last sentence:
Every dollar released from taxation that is spent or invested will help create new jobs.
The Bush tax cuts failed in that respect. The wealthiest few who benefited the most basically hoarded the money, or continued to outsource jobs to other countries where labor was cheaper. That way they could hold more money out of the economy by not investing to create new domestic jobs.
That's contrary to Adam Smith's "invisible hand." But Smith was the father of capitalism, an economic philosophy that you give lip service to, but in practice and advocacy loathe and detest.
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