Why do Liberals believe that increasing government aid to poor cities will revive an economy?

Question

Elliott Spitzer has increased spending almost 9% in one of the highest taxed states in the country in order to revive an upstate economy ravaged by too much government and high taxes. His solution involves an increase in business taxes in an area where businesses are fleeing high taxes. Huh?

Answer 1

lol..intel guy!
first of all, the way all those answerers put it sounds like it makes good sense, but here is the truth.
liberals are socialists.

if you DECREASE taxes for this sort of thing, then people have more money to spend. When people spend money, businesses do better. When businesses are doing better, they can afford to hire more people, which makes the businesses better and makes people spend money. With more people employed, these people can spend more money. Its a cycle. However, when you tax you are taking away money that can be put back into the economy to REGULATE the economy and "make the world a better place"
basically, if you leave the taxes alone, the economy will regulate itself. Its so simple, but far too complicated for a liberal

Answer 2

Based on the way that you asked the question, you are obviously biased. However, I am generally biased in the same way.

If you want to get the liberal perspective, the extra spending is the equivalent of investment in the community. Most economic models will tell you that the multiplier on government spending is lower than the multiplier on private investment. This only works if the private sector would invest in the community. So the justification is that government is the only one who will invest in the area.

The tax issue is also a problem, but if the increased spending/services that are received are worth the tax increases then business will stay. So maybe they end up with something that they value but couldn't collectively agree to do it.

This is a really basic explanation for justifying government intervention in a local economy.

I am more in favor of letting the market decide, but I understand where the other side is coming from.

Answer 3

ask your self why human beings make the hassle to respond to a query, yet do no longer answer it only ramble on approximately no longer something. It happens alot of the time yet only like right here, what element are they making. a definite % of his supporters particular are waiting for that. i'm only surprised on the fraud that is going on and government workers won't verify. this may well be reason they discern somebody would shoot at them or that they are jus tinthe place because of the "peter concept" and not extremely worth being employed. believe me I even have dealt with quite some them that have been valueless, subsequently they desire the handouts. those that have a ton of infants and function the docs say the infants are "handicapped" is wonderful. i understand first hand of a few of this via artwork. lIke one woman has 2 that can't hear, yet she will communicate I a classic tone and that they right here her for the time of a room. Are th e nurse that makes extreme money, yet she additionally has a parttime activity and he or she is going to the government place and only submits the section time activity pay slips and gets nutrition stamps, all infants scientific taken care of. then yu have been given those that collect from 2 3 or extra distinctive counties. tha't's extreme money. i understand one that gets $3,4 hundred a month. in the event that they're caught they're 'compelled" to pay returned ten greenbacks a moonth. that is as undesirable because of the fact the IRS with the estates and busineses that have each thing depreciated over ninety% so no taxes are owed or extra perfect however the crooks hire the final attroneys and cpas that cover the estates and sources. the democrats understand this because of the fact of this that had a in good shape on the Bush assets stuff. yet yea lots of his persons are into loose money.

Answer 4

First off, I think you're making a blanket assumption. However, think about this: more productive citizens means more productive economy. Those who have money spend money which is good for the economy. Those who have jobs spend money. Those who are poor don't have jobs. So, as you can see, if we get the poor people not poor, then they will spend money which will stir the economy.

Answer 5

b/c liberals have their brain replaced with organic tofu.