[lbo-talk] Money printing

[Wojtek Sokolowski]

Boddi:
>    She reminds me of a question I have meant to take to the list for a
> while.  What do we think has been the short-term positive effect of
the new
> "Bush Keynesianism".  Please don't take this as an endorsement for
Bush
> policies.  I just mean to ask where would we be without the massive
deficit
> spending increases and huge boost in liquidity.  

Is not it the case that much of the deficit is due to tax cut rather
than spending?  Unlike gov't spending, which actually results in the
production of tangible goods, hence creates jobs, tax cuts are mainly
used to refinance the existing debt, so their effect on job creation is
not what the Bush gang advertises.  Ergo: the right question to ask is
what the effects of the deficit would be had the Bush gang increased
public investment instead of reducing public revenue?

Wojtek