My Stimulus Plan
Many of you wrote me last week knowing that I oppose the big spending plan as presented, and want to know what I am for. Well, what I am for is somewhat unique. There are basically 3 forms of stimulus being discussed:
Keynesian spending: This comes from the economic theories espoused by Englishman John Maynard Keynes in the early 20th century who believed that government spending would stimulate economic growth when the private sector doesn’t have enough to spend. The Democratic $819 billion "stimulus bill." is 90% Keynesian. Supply side tax cuts: This follows the Laffer curve theory by San Diego economist Art Laffer that cutting taxes and leaving more money in private hands will have a greater multiplier effect and be more stimulative. The Republican alternative is 100% supply side tax cuts. … Read More