Thursday, October 23, 2008 10:52:57 AM
Is it applying Supply-side economic's: "economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates...Maximum benefits are achieved by optimizing the marginal tax rates of those with high-incomes and capital who are deemed as most likely to increase supply and thus spur growth.["
Do we go back to Keynesian economics: Keynes argued that the solution to depression was to stimulate the economy ("inducement to invest") through some combination of two approaches :
a reduction in interest rates.
Government investment in infrastructure - the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment."
Is it Reagan economics Reaganomics" was the most serious attempt to change the course of U.S. economic policy of any administration since the New Deal. "Only by reducing the growth of government," said Ronald Reagan, "can we increase the growth of the economy." Reagan's 1981 Program for Economic Recovery had four major policy objectives: (1) reduce the growth of government spending, (2) reduce the marginal tax rates on income from both labor and capital, (3) reduce regulation, and (4) reduce inflation by controlling the growth of the money supply. These major policy changes, in turn, were expected to increase saving and investment, increase economic growth, balance the budget, restore healthy financial markets, and reduce inflation and interest rates."
Which candidate is implementing the right action plan for this country and why? THAT should be the topic of discussion!
USA STRONG BUY!
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