DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - The rich are getting richer much, much faster.

**Mearticbaibre** · 05-21-2012, 01:15 AM

Taxing people for foodstamps.

Food stamps actually create demand because poor people actually spend the money at stores, sure, you can't have your economy relay to much on that but as a direct stimulus to increase demand it is good. Tax cuts for rich people? Not so much, they already have everything they need so they often save the money or pay down debt. Long term that's good but in the short to medium term it does nothing to increase demand which is what stimulus is supposed to do.

05-21-2012, 01:15 AM	#6
Mearticbaibre Join Date Nov 2005 Posts 413 Senior Member	Taxing people for foodstamps. Food stamps actually create demand because poor people actually spend the money at stores, sure, you can't have your economy relay to much on that but as a direct stimulus to increase demand it is good. Tax cuts for rich people? Not so much, they already have everything they need so they often save the money or pay down debt. Long term that's good but in the short to medium term it does nothing to increase demand which is what stimulus is supposed to do.
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