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Subject:  Re: The Fiscal Cliff-Solving the wrong problem Date:  11/14/2012  1:27 PM
Author:  goofnoff Number:  408489 of 538691

The problem we have today is not going to be fixed by addressing the supply side of the equation. Corporations aren't curtailing capital spending because they think the tax rates will be going up. They are curtailing their expansion because they can't employ the facilities already in place to their fullest because people are broke and the demand is just not there.

A lot of folks who believe in the Laffer curve fairy tale just can't get their minds around this. Same thing happened in '29. Hoover's advisors told him they needed to cut spending to restore confidence.
We know the results. We would have had the same problem now, but the government intervened to save capitalism.
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