Fiscal multipliers, something you should know about because they impact you in oh so many ways. It is all part of the jigsaw puzzle that is our government. It is amazing how much influence those that we never elect have on our government. Sometimes I question, what do we pay our elected official for, what do they actually do?
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The Black Box That Dictates Tax and Spend
“Fiscal multipliers.”
It’s a black box term used in DC to determine which tax and spend policies deliver the biggest bang for the buck, a term that is so cryptic, even economists can’t quite agree on how they work.
But fiscal multipliers can do great damage to your wallet because they dictate all sorts of tax and spend legislation.
Notably, this theoretical bling is used to justify the DC fiscal dipsomaniacs’ very expensive Keynesian spending “multipliers.”
More and more spending that creates a possible devaluation of the dollar which creates inflation. Since all sorts of taxes, including the capital gains tax, the estate tax, and the alternative minimum tax, are not indexed to inflation, taking more taxes from you and me due to government-caused inflation is immoral.
Fiscal multipliers also provide political cover for almost any legislative science project Congress cooks up.
myBlessedHope 