Originally Posted by jayeff

Attractive as that idea is, unfortunately (which is the main reason why the Democrats' economic record over the past 50 or 60 years has been better than that of the Republicans) it doesn't actually work out that way.

Corporations given tax benefits do not generally invest the bonus in new jobs, and windfalls for the rich do not result in them going out on shopping sprees. However, when government - particularly federal government - spends money, it is frequently on projects which do generate jobs, many of them among the lower economic classes. And these people spend most of the extra they earn, since when such a cycle begins, many are not earning enough to do otherwise.

Worse still for those beating the "less big government" drum, once that money is actually circulating, it not only generates employment in the private sector, but also taxes almost every time it changes hands. That in turn makes it much easier to attempt to balance the local, state and national budgets.

And although elections are fought on a variety of issues, since WW2 the pendulum has swung back and forth between Democrat and Republican primarily according to this issue. Once the Republicans are in office, the economy usually slides and support eventually switches to the Democrats. Under the Democrats, enough of those who have seen their incomes grow finally begin to resent the taxes they pay and decide to vote Republican. And so it goes back and forth...