tag:blogger.com,1999:blog-22031270.post2106687635766304543..comments2023-11-03T19:05:08.512+11:00Comments on Harry Clarke: Taxes vs. expenditure stimuli - on the one hand & on the other...Unknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-22031270.post-78467493697822685362009-02-10T16:22:00.000+11:002009-02-10T16:22:00.000+11:00Well of course you can make the tax cuts temporary...Well of course you can make the tax cuts temporary, but if you tell people they're temporary they're likely to save them. Permanent income hypothesis and all that.<BR/><BR/>The Keynesians have a point about balanced budget multipliers. If the government spends the damned cash on things like infrastructure then you know it's spent, not saved. Or you can limit the cash handouts to poor people who can be guaranteed to spend it (if only on pokies!).<BR/><BR/>Cash handouts or tax cuts to people who are both able and motivated to do precautionary saving (fearing job loss and/or deflation) will tend to be saved.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-63920178256401362292009-02-08T13:45:00.000+11:002009-02-08T13:45:00.000+11:00Harry,you might have missed it but the expenditure...Harry,<BR/><BR/>you might have missed it but the expenditure is finite.<BR/><BR/>Tax cuts are ongoing. How are you going to pay for them?<BR/><BR/>There is no research of any quality which shows tax cuts raise enough revenue to pay for themAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-54867020549247839832009-02-07T18:27:00.000+11:002009-02-07T18:27:00.000+11:00Homer (if it is use) - additional spending must al...Homer (if it is use) - additional spending must also be financed. it is no difference to tax cuts.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-10107475041763202122009-02-07T17:12:00.000+11:002009-02-07T17:12:00.000+11:00Interesting proposition Homer. It's Homer behind t...Interesting proposition Homer. It's Homer behind the anonymity, Harry. I know that bad diction from a mile off.<BR/><BR/><BR/><BR/><BR/><I>Unfortunately most people proposing tax cuts including Turnbull are saying rising economic activity will take care of all of this.</I><BR/><BR/>Homer:<BR/>Are you actually saying that economic growth doesn't raise the amount of money going into the government's coffers. If you are you're an usually bad economist.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-17277738354064032302009-02-07T16:57:00.000+11:002009-02-07T16:57:00.000+11:00Harry, tax cuts have an impact on the budget.At so...Harry, tax cuts have an impact on the budget.<BR/>At some stage you have to deal with the money lost.<BR/>when recovery comes do you raise taxes or cut spending.<BR/><BR/>Unfortunately most people proposing tax cuts including Turnbull are saying rising economic activity will take care of all of this.<BR/><BR/>It doesn't.<BR/><BR/>Given the times one might think more saving and less spending would occur and it does does not have the 'big bang 'approach eitherAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-44759578063936029402009-02-06T23:14:00.000+11:002009-02-06T23:14:00.000+11:00at times?at times?Anonymousnoreply@blogger.com