Refuting supply-side economics

From: Bodhisattvacat (drr0cket_at_yahoo.com)
Date: 09/12/04 

Date: 12 Sep 2004 11:22:47 -0700

The idea that paying for tax cuts with deficit spending helps the
entrepreneur, is sheer nonsense. As government debt builds, the
investor finds it more profitable to buy federal bonds rather than
invest in the productive sectors of the economy. The entrepreneur thus
is denied the capital he needs to start and expand his business. So
that, although he has lower taxes, he is left in a much worse position
than he was before.

The economy with high public debt becomes sluggish, unwieldy and weak.
It is leeched of investment capital and makes businesses a lot harder
to expand and develop. The high-tax, no-deficit Clinton economy was
able to grow fast, because there was capital available for its
development. The low-tax, high-deficit Bush economy is stagnant,
because the investment funds are denied the businessman and all go into
buying government bonds.

I don't know why Democrats haven't said anything to this effect. I hate
to be the only person I know who has thought of this obvious fact. It
is not a difficult concept to explain to American people.

Bush is screwing the entrepreneur, and he is screwing my generation.
With $2000 per person per year in added federal debt, America will not
be able for long to maintain its vibrancy without going through some
very painful times. Reagan had an excuse; he had a Democratic Congress
and a Cold War. But Bush has a Republican Congress and two minor
conflicts with very weak enemies that together cost $100 billion a
year. For him to be running $500 billion a year deficits, is
inexcusable.

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