Skip to comments.(Almost) Everything You Ever Wanted to Know about the Fiscal Policy Debate in a Single Chart
Posted on 03/22/2013 8:17:43 AM PDT by Kaslin
Im a sucker for a good flowchart because they either can help to simplify analysis or they can show how something is very complex.
Some of my favorites include:
Id like to see a good fiscal policy flowchart, one that captures all the options for policymakers.
I created a matrix early last year to illustrate some of the goals and tradeoffs, but it wasnt comprehensive.
Well, the folks at the UK-based Social Market Foundation have stepped into the breach and put together a flowchart that seems to cover every option.
They call it The Gordian Knot of Growth. Its designed for the UK Chancellor of the Exchequer (akin to our Treasury Secretary and Office of Management and Budget Director), but I think the various boxes also capture almost all of the various policy prescriptions in the US.
But notice that I said this flowchart presents almost all of the options. Youll notice that theres no box for tax increases or higher marginal tax rates. That will give you an idea of how Obamas class-warfare tax policy is way out of the mainstream.
For what its worth, I belong in more than one category. Im an Expansionary fiscal contractionist, as well as a Deregulator and (under the TINA options) a supporter of Long term measures.
In other words, the burden of government spending should be reduced and we should allow markets to allocate resources.
A large fraction of the ruling class doesn’t want economic growth. They think we have plenty enough right now and the only problem is some have more than their fair share.
If the ruling class wanted growth we’d be growing.
Stephen King is a Zombie slayers proponent...who would have thought?
What does Stephen King have to do with this?
A lot of wealthy people resent competition. Once you’ve “won”, you want the game to stop. You don’t want the grandsons of Russian Jewish immigrants competing with your grandsons for admission to Harvard and beach front property.
The great-great grandsons of the Cabot and the Lodges work for the Levis and Cohns and their great grandsons will work for the Chens and the Ngs.
its on the “The Gordian Knot of Growth chart
Real demand is the will combined with the power of purchasing. The will to purchase can be taken for granted. All that is required to enlarge demand is the power of purchasing. And all that is required to enlarge the power o purchasing,is an increase in production. In a free society, one way to increase production is to stop the assault on the saving and investment of businessmen, capitalists, and the rich, by cutting taxes, and reductions in government intervention such as fewer regulations, and less deficit spending with its consequential inflation.
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