I'll let Geithner's own words display his ignorance about the source of economic wealth creation in our economy and the size and sign of the Government spending multiplier. Patently unbelievable:
Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people.
“We're not doing it because we want to do it, we're doing it because if we don't do it, then, again, I have to go out and borrow a trillion dollars over the next 10 years to finance those tax benefits for the top 2 percent, and I don't think I can justify doing that,” said Geithner.
Not only that, he argued, but cutting spending by as much as the “modest change in revenue” (i.e. $1 trillion) the administration expects from raising taxes on small business would likely have more of a “negative economic impact” than the tax increases themselves would. http://www.cnsnews.com/news/article/geithner-taxes-small-business-must-rise
Go for someone who makes you smile because it takes only a smile to make a dark day seem bright.
Posted by: Pandora Beads newzealand | February 17, 2012 at 09:24 AM