Thursday, January 29, 2009

Spending or Tax Cuts

The REpublicans are like a broken record--they want more tax cuts and not so much spending to solve the recession. Not collecting taxes or government spending are the same thing in regard to impact on the Treasury. There is, however, a big difference in who benefits. The REpublicans gave the rich the largest share of past tax cuts, which apparently they want to enlarge. Spending on the other hand, has the possibility of providing the unemployed with a job.
The old saw about infrastructure investments being too slow should be ditched. State and local governments have lots of maintenance projects that are ready to go and do not require big lead times to design.

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