Letting people keep their
money, thereby letting them spend it in the fashion that is most "efficient" to them, is WORSE than
FORCING them to spend it on something everyone knows is a complete waste??????
For the economy in general, the answer to your question is yes.
And while this may seem counter-intuitive to most individuals, anyone who has studied systems of any sort and understand how entropy works will understand why an economic system works that way.
Tax cuts let people keep their money. Most (not all) tax cuts will go to well off people with the result of being invested. Investments tie up money. I'll concede that some investment money is spent in the form of investments in stocks and other forms that put money back into the system, but the over all net effect of investing is to take money out of the system.
Spending, even (perhaps especially when) when the money is wasted helps to keep the money circulating within the system.
In other words, money (like heat) has a tendency to travel downhill (to trickle down so to speak) the problem is that supply side economics mistake the direction of the slope and think that money will magically work its way up the slope from the investors to the workers. But money, following the path of least resistance, has a tendency to stay in the pockets of those with deep pockets. The end result is something resembling heat death in a closed system. To prevent this, (1) one needs to open the system, (2) put more energy (money) in the system, or (3) redistribute the existing money. The US has a large problem executing (1) called the trade deficit. Option (2) typically leads to inflation which is a bad thing. Item (3) is usually the best bet and governmental spending programs are one way to do that.
The big question the economist must ask is why should economic systems be different than any other system? The universe is running down, and so is our economic system. We can either hasten entropy or delay it. Hastening entropy leads to recessions. Delaying entropy leads (temporarily) to a more robust economy.
have a day,
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