Sunday, March 22, 2015

Fiscal Policy (Taxes) Real Interest Rates

Fiscal Policy (Taxes) Real Interest Rates

OK, correction ,, Tax cuts and RIR

Look at it from a balanced budget starting point.

Tax cuts require the government to deficit spend as we don't assume there could be a reduction in government. (faulty and circular thinking in my libertarian view)

So, Taxes decrease and therefore government spending must increase to make up the lack of taxes being collected. The Real Interest Rate increases...