Economic Stimulus: Tax Cuts vs Government Spending

[Trample the Elderly]

Originally Posted by Schneed10

From a macroeconomic standpoint, the goal is simply to get money into the hands of the people so that they in turn spend it, which in turn creates jobs.

As long as the money goes to someone who will spend it, it will be the best way to kick start the economy.

I'd like to know if this scenario is truthful. I'm not B.S.ing you Schneed. The government borrows money from China, Japan, and or Dubai. The government then gives that said money to the public. The public then goes out and buys goods manufactured in China and Japan. Is that a logical statement?

[The Goat]

Originally Posted by Trample the Elderly

I'd like to know if this scenario is truthful. I'm not B.S.ing you Schneed. The government borrows money from China, Japan, and or Dubai. The government then gives that said money to the public. The public then goes out and buys goods manufactured in China and Japan. Is that a logical statement?

I see what you're saying but think it would only work that way if every dime consumers spend went to China and Japan (or on imports for that matter).

... you're right too about how much it sucks borrowing money so much money as a nation.

[firstdown]

Originally Posted by Trample the Elderly

I'd like to know if this scenario is truthful. I'm not B.S.ing you Schneed. The government borrows money from China, Japan, and or Dubai. The government then gives that said money to the public. The public then goes out and buys goods manufactured in China and Japan. Is that a logical statement?

Put that way it seems kind of funny.

[Trample the Elderly]

Oh I forgot. Our government has to pay interest on that money it borrows. I don't see anything in my office that wasn't made in China, even my little American flag.

[saden1]

Originally Posted by Trample the Elderly

I'd like to know if this scenario is truthful. I'm not B.S.ing you Schneed. The government borrows money from China, Japan, and or Dubai. The government then gives that said money to the public. The public then goes out and buys goods manufactured in China and Japan. Is that a logical statement?

Yes, we do that all the time too and we're the biggest player in the IMF (we're the lone country with veto power plus 17% voting power) and World Bank (the institution's head must be an American). Of course we also have USAID which is our "charitable" arm where money given/lent has an implicant requirement of "Buy American." BTW, the stimulus package contains a clause that says buy American which is stupid.

We're at the center of the world economy. If we go down, everyone goes down. China will revert back to an agrarian society if we went poof.

[Schneed10]

Originally Posted by Trample the Elderly

I'd like to know if this scenario is truthful. I'm not B.S.ing you Schneed. The government borrows money from China, Japan, and or Dubai. The government then gives that said money to the public. The public then goes out and buys goods manufactured in China and Japan. Is that a logical statement?

Yeah but you make it sound like that's a bad thing for the US. It's not.

Many of those companies employ our workers, many assemble or make their products here, many of those companies' shareholders are US citizens, and they all pay taxes in some form or another to the US government (albeit with plenty of loopholes).

The US derives more overall benefit by buying the product that brings the most value for the money, regardless of the company's origin.