samsmart
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Andrew Mountford (of the University of London) and Harald Uhlig (of the University of Chicago) have used sophisticated statistical techniques that try to capture the complicated relationships among economic variables over time; they conclude that a "deficit-financed tax cut is the best fiscal policy to stimulate the economy." In particular, they report that tax cuts are about four times as potent as increases in government spending.
Perhaps the most compelling research on this subject is a very recent study by my colleagues Alberto Alesina and Silvia Ardagna at Harvard. They used data from the Organization for Economic Cooperation and Development to identify every major fiscal stimulus adopted by the 30 OECD countries between 1970 and 2007. Alesina and Ardagna then separated those plans that were in fact followed by robust economic growth from those that were not, and compared their characteristics. They found that the stimulus packages that appeared to be successful had cut business and income taxes, while those that evidently did not succeed had increased government spending and transfer payments....
Of those countries, how much of their economy was invested into the American economy?
3. the economy will collapse further as the price of goods spikes - with the poor taking the brunt of the hit. we will start to see large job losses, the market will plunge, and growth will disappear.
trade wars are wars that governments wage on their own people.
As opposed to the alternative, which is reducing labor regulations and industry wages as low as what is paid in other countries - with the poor taking the brunt of the hit. We will see increases in employment but reduction in the quality of life for those wage earners which will add more pressure to our health care system and possibly to an increase in crime as low wage earners either commit crimes to increase their economic lot in life or as they rely more on illegal drugs to cope with the stresses of working long hard hours for little pay.
One way or the other someone's going to get the **** end of the stick. And if you notice my idea is only a trade war against those nations who treat their citizenry in an abusive way - no trade wars will happen with those nations who treat their laborers fairly and humanely. Therefore, the global trade of goods will still flow, brunting the negative impacts you mentioned.