Economy and that scary "R" word

[Schneed10]

Originally Posted by saden1

How has it been good for the economy? We are spending more money than we generate. I'm no economist but my take is that you don't give a tax cut without a balanced budged and a surplus.

1) If the tax cut wasn't put in place, unemployment would have hit sky high levels.

2) Government deficits don't stall economic growth. They weaken the dollar, which is a bad thing in that you can't go to Europe for vacation as cheaply, and you can't import goods as cheaply. But it's a good thing because people from other countries invest more in our companies (their currency is stronger against the dollar, so one Euro can buy more shares of Coca Cola than it normally could). Our businesses then take that cash and invest in new products and markets, creating jobs and generating more tax revenue for the US government.