The Multiplier Effect of Government Spending is 0-So Lower Spending after Fiscal Cliff Doesn’t Matter – Points and Figures | Points and Figures

Since the multiplier effect of government spending is 0, lower government spending doesn’t have an effect on GDP. The thing that will have an effect is the convoluted tax policy put forth by Obama and the Democrats, along with similar convoluted propositions by the Republicans.

First, let’s slash government spending and sell off unneeded assets. That brings in revenue. Then change tax policy.

If we want to tax for growth here is what we should do.

via The Multiplier Effect of Government Spending is 0-So Lower Spending after Fiscal Cliff Doesn’t Matter – Points and Figures | Points and Figures.

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