CBO: Stimulus hurts economy in the long run

[sailingaway]

http://www.washingtontimes.com/news/2011/nov/22/cbo-stimulus-hurts-economy-long-run/#.Tsw20jgcH0U.twitter

[Becker]

How is stimulus different than tax cuts? Don't they both put more money in the market and less in the government black hole?

[pcosmar]

How is stimulus different than tax cuts? Don't they both put more money in the market and less in the government black hole?

Where does this money that they "put in" come from? (that should answer your question)

[Miss Annie]

Oh.... it took me a long time to get this stuff! Last year I did not even fully understand the function of the congress.
The stimulus comes from the budget. Since there is no money in the budget, we then borrow it from China...... and then it is added to the National Debt. And come to find out... it did not do a dang thing to help anyway. Oh yea,.... it might have helped Goldman Sachs!

[Becker]

Where does this money that they "put in" come from? (that should answer your question)

printing money comes from thin air. Tax cuts puts the amount originally designated to a black hole back to the market.
So isn't that the same thing? Isn't government's tax collection black hole the same as thin air?

Put it this way, if you burned money, the effect is the same as paying taxes, it's put out of the market.
So whether you save money from being burned, print new money, or save money from being taxed, how is it any different?

The only way to solve this question is, if you say taxation doesn't remove money from the market.

[pcosmar]

printing money comes from thin air. Tax cuts puts the amount originally designated to a black hole back to the market.
So isn't that the same thing? Isn't government's tax collection black hole the same as thin air?

Put it this way, if you burned money, the effect is the same as paying taxes, it's put out of the market.
So whether you save money from being burned, print new money, or save money from being taxed, how is it any different?

The only way to solve this question is, if you say taxation doesn't remove money from the market.

All of the money is thin air. Debt.

The only real stimulus would be to seize the assets of those that have been raping the treasury since 1913. Return that to the treasury, Remove all Dollars in circulation (declare them null and void) issue new money at a 100 to 1 exchange.

Reboot.