Shadows
YaBB God
Posts: 4,956
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« on: April 22, 2017, 10:05:32 PM » |
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My blood boils up when I see this supply side garbage used to justify any ridiculous policies. But anyways historically, welfare measures always had an economic positive too. They are what we call GDP stabilizers - When you lose a job, you have some basic stuff to fall back on, you still contribute to the economy. Likewise progressive taxes are in the opposite spectrum, you migrate to a higher tax bracket sucking excess liquidity.
They do what we call - preventing an economic system from over-heating or crashing. That is why the Consumption Function of GDP in the last many decades has barely gone to negative territory. In general they have economic & moral purpose - You support people when they have nothing so that in most cases they can go & earn a decent income & live a decent life. That is the economic purpose - To prove a safety net for people to fall back on. Otherwise you are giving up on the entire economic & non-economic potential of that person !
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