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Old 02-05-2009, 08:44 AM  
kowalsky
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Extra taxes are used for states to collect money to make public infrastructure work. That work need people, usually those people who are the first to lose their job. So after new people get back to the job chain, the consume start working again (people with low salary usually donīt save money, the consume everything). That consume active the economy, itīs a cycle very well explained by Keynes.
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