Quote:
Originally Posted by camaropete
Well, that is yet to be seen. Most of the money is coming from the government taking on debt by selling bonds to other countries. At some point, someone (us) is going to have to make up those interest payments. Up to now, people (other countries) have been willing and able to give the US money. If that willingness goes away before we get things back on track, we are going to see inflation on the rise very quickly. I doubt you will see any tax hikes (at least for the lower and middle class) in the near future. However, you might see the top 10% of taxpayers getting hit with either no tax break or tax increases. Doesn't make sense to me since they have lots of money to spend and I would think that you would want to give them all good reasons to go and spend it (e.g. tax breaks). Once things start to turn around, that's when you will see taxes increased in order to pay back the money we owe.
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I want to respectfully disagree with you. I've got many friends that are wealthy and most of them got that way by being frugal. They don't spend money for the sake of spending, they invest it, hence the current Overcapacity/under consumtion situation. If you want to create jobs you have to encourage consumtion, you have to give the money to people who need things and will spend it.