Quote:
Originally Posted by stampsx2
Instead of spending like crazy in a valley to create jobs, why not lower taxes on every big and small business so they can create jobs and growth themselves. Those are long term jobs that fund themselves instead of short term jobs that are funded by the taxpayer.
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Trickle down economics has shown not to be effective stimulus and by the time the tax affects have taken place you are long past when they are needed. Instead of cutting business taxes there is the argument that just giving poor people money is the best kind of stimulus because they spend it locally on neccessities which in turn creates profit for businesses.
The logic of counter cyclic spending though is that the government has things that it needs so if a ring road is a public good that has been deemed necessary you are better off borrowing in a slow time than building it in a boom.
So it isn't spending like crazy, it's spending money on projects which are necessary at some point. So you don't dump a billion into CalgaryNext you dump a billion instead into the green line. The key is that you don't spend just to stimulate you build things you need