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Originally Posted by CaptainCrunch
Yup drive more people into bankruptcy and out of the middle class to lower class while continuing to spend a deficit on the operating budget. Brilliant. Your plan would reduce individual spending making things even worse economically and probably increase operating and spending budget deficits.
Yup increase taxes on individuals, increase taxes on everyone and what profit. And You have to be careful on this whole thought that infrastructure stimulus is going to do anything, as its becoming impossible to build anything in the current regulatory environment and nobody is going to invest in it under your plan.
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Well they could just borrow more money, the crushing interest rate of 0.986 percent is probably unbearable but if they borrowed 10 billion to stimulate the economy it would cost them 98 million or so this year. But the deficit, got to watch for that, despite the fact that interest rates are almost zero. If that rate is too high they could borrow for a ten year period at 0.73 percent and pay 73 million dollars.
I know most common sense people use “household budget” as the prime example of why you don’t run a deficit. I would love to know the household which goes on hard times and has an opportunity to borrow 50,000 dollars to help float it for a year while it gets back on its feet and balks because it will cost them $365 dollars or one dollar a day.
The answer seems pretty clear, Jason Kenney just needs to go out and explain he was wrong about deficits and put forward a stimulus package by borrowing money.