If the tax cuts on the wealthy had been extended, giving more disposable income to the super-rich, there would have been more money to pour into even more tiers of derivatives and CDSs. The effect would have been a bit like more people buying into a pyramid scheme, more investors into a Ponzi scheme and would have stalled off a collapse even further.
After all, when someone is pushed off a twenty story building they can still look pretty good passing the 3rd floor. If you open the sidewalk grating to allow them to land in the 2nd or 3rd basement they will have looked good a bit longer.
That's the only theory I can imagine. The best case scenario.
That brand of economics is not "trickle down". It is "terminal velocity and splat, enjoying the ride as long as possible" economics.
Arf
Off Topic » in reply to OK, So explain to me, again...
Let me try.
The whole thread (44 posts)
- I do not understand something about *this* recession...[big surprise]
- There was well over 200 billion worth of tax cuts in that stimulus package
- Once the markers were called...
- (targeted) government spending produces more jobs than tax cuts.
- re: I do not understand something about *this* recession
- Money
- Because this time, the tax cut came first.