Instead of throwing money into the economy in the form of this “stimulus package”, what if the government had decided to rid of the income tax for a year? Its overall effect on the national debt would be the same for a period of time, but as a result everyone would have more money to spend, which would make its way back into the economy. -Colin
Colin: if many of those people decided to put that money away for a rainy day it would not help the economy at all. Krugman discusses this in one of his op/ed pieces I think.
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Instead of throwing money into the economy in the form of this “stimulus package”, what if the government had decided to rid of the income tax for a year? Its overall effect on the national debt would be the same for a period of time, but as a result everyone would have more money to spend, which would make its way back into the economy.
-Colin
Colin: if many of those people decided to put that money away for a rainy day it would not help the economy at all. Krugman discusses this in one of his op/ed pieces I think.
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