What are some side policies in addition to tax cut a government may institute to increase aggregate supply?

Question

What are some common side policies in addition to tax cut a government may institute to increase aggregate supply in the economy and the impact it will have on the unemployment situation.

Answer 1

Reduce spending. While J M Keynes turns in his grave, I will explain. A dollar freely in circulation most efficiently allocates resources and generates productive jobs, which increases aggregate supply. The same dollar spent by the government misallocates resources and is poor or counterproductive at generation of jobs. If we could somehow restrict the government to its constitutional role, which would reduce its size by 70-80%, all that productivity would be released to the efficiency of the free market. We would become a world powerhouse economically, kind of like we were our first 130 years. It would of course take a major revolution to bring that about, of course.
Any tax cut without a spending cut just changes the benefactors, not the economy as a whole. After all, it doesnt matter that much to most of us whether the government takes money in taxes or debases the currency by printing it or constrains the capital markets by borrowing it.

Answer 2

I consider the polls. the only difficulty is while the few do not in user-friendly terms like the voters judgements they arrive across a super liberal choose and document a adventure in hopes of having the voters overturned. the reason this does not artwork on a countrywide foundation is the only way for substitute at that time is a Constitutional modification. administration of the money ability loads of power in Congress. in user-friendly terms some might vote to chop back their power. additionally, the guy States are used to getting super sums of funds from the Feds and can choose for to not bypass a Constitutional modification which will mean the money will now not come from the Feds. Getting 38 States to approve the modification would be very puzzling. The above motives does not mean we the persons shouldn't do each little thing we are able to to tension Congress to do this.

Answer 3

Quit spending money on $30,000 Toilet seats, $30,000 Rolls of Toilet paper, Aquatic Life in Arizona and some other wasteful things.

Answer 4

Do away with the envirnmental laws and have free regien over natural resources. Cut welfare and give to the rich.

Answer 5

You have to answer this question for an exam at Uni. next week, don't you? tsk tsk.

Answer 6

Find other ways to cheet the fellow citizens.....

Answer 7

gimme back my avatar