While Traditional Keynesian Analysis Indicates That Increases in Government Purchases

question 36

Essay

While traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes to stimulate the economy, what are some of the reasons why tax cuts might be preferred to increased government spending?

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Definitions:

Sexism

Prejudice, stereotyping, or discrimination, typically against women, on the basis of sex.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Distributive Justice

A concept in ethics and political philosophy concerning the fair allocation of goods, resources, and opportunities among members of society.

Unfettered Free Markets

Economic systems with minimal or no government intervention, where the forces of supply and demand are allowed to determine production, consumption, and price levels freely.