10-08-2010, 08:31 PM
So Republicans, or at least Newt Gingrich and other conservative talkers, reject the widely accepted macroeconomic concept of the "multiplier effect" when it comes to the short term economic benefits of government spending to support the poor, yet that very same economic concept becomes their best friend when they want to advocate for tax cuts. Why is that?
Can't have it both ways Newt. Increasing the amount of money that is in the economy either stimulates the economy, or it doesn't. And the rate of the multiplier effect has everything to do with how quickly the money gets spent. Newt knows this, he is not a dumb person. He just assumes that most of his audience never took college Econ 101, and he's probably right.
Can't have it both ways Newt. Increasing the amount of money that is in the economy either stimulates the economy, or it doesn't. And the rate of the multiplier effect has everything to do with how quickly the money gets spent. Newt knows this, he is not a dumb person. He just assumes that most of his audience never took college Econ 101, and he's probably right.