ronki23
Well-Known Member
Keynesianism is the theory that the government has a role in the economy and the economy can be stimulated via spending. Franklin Roosevelt is an example
Trickle down theory says if we cut taxes for the 'rich' then they money they save by not being taxed can be spent; when a person or business receives that money they too will spend it and so on. Ronald Reagan is an example.
Why don't we use low taxes (thus trickle down) during booms and then when a recession kicks in you stimulate the economy via spending? I don't mean zero taxes but surely enough to be saved for a rainy day by the government. Isn't that exactly what Clinton and Obama did?
Trickle down theory says if we cut taxes for the 'rich' then they money they save by not being taxed can be spent; when a person or business receives that money they too will spend it and so on. Ronald Reagan is an example.
Why don't we use low taxes (thus trickle down) during booms and then when a recession kicks in you stimulate the economy via spending? I don't mean zero taxes but surely enough to be saved for a rainy day by the government. Isn't that exactly what Clinton and Obama did?