johnm h Wrote:
Nov 19, 2012 11:21 AM
Shrinking spending does not suck money out of the economy, it reduces forced borrowing. Raising revenues also reduces forced borrowing. How we raise revenues matters greatly. Growing the economy,while reducing the tax burden on investors, entrepreneurs and savers is the way to raise revenues i.e. a consumption tax. Only deluded Keynesians still believe that government "stimulus spending can add to national wealth or that raising savings would harm investors. It is just the opposite and difficult to know why that is not obvious.