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Old 01-18-2007, 05:43 PM   #26 (permalink)
Jaxian
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Quote:
Originally Posted by Jefferson View Post
This is EXACTLY what the anti-Reagan liberals were screaming 20 years ago. And guess what? The strength of the economy caught up, and actually did what the liberals in the 80s said COULD NOT BE DONE!

You CANNOT tax an economy into prosperity.
Understand that creating a deficit does not negatively affect the economy immediately. It takes a large amount of time for the deficit to begin its negative effects.

Reagan and Bush Sr spent a lot of money. When they did this, the economy was improved in the short-term, because all of the money they spent was going into the economy. But the economy suffered in the long term because future governments have to actually pay off that debt.

Going into debt is a good method of mitigating a recession. However, we shouldn't be increasing our debt when we're not in a recession. That causes problems for the economy later on. Bush might be looking at an economy on the upswing, but he needs to consider the consequences of spending too much.
-Jaxian