econ article 1

econ article 1 - Alexandra Williams Economics 201 Gill...

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Alexandra Williams Economics 201 Gill January 23 rd , 2008 “Feel-Good Economics” Summary In this article, writer Bruce Bartlett discusses tax rebates and their effects on the economy. The economy today is in a recession, and the government has decided to issue tax rebates to help stimulate it again. The rebate theory goes way back to one of the most famous economists, John Maynard Keynes, who believed that spending was the most driving force in the economy. Whether it was done by the government, corporations, or individuals, he believed that all types of spending would help spike the economy out of a recession. However, Keynes’s idea was not foolproof, as it was developed during the Great Depression during which time most banks were closed and there was a severe lack of liquidity. In this time, deficit spending by the government was a good idea to help keep money circulating and to overcome deflation. Once the Depression ended though, the idea persisted well into the mid-1970s. In 1974, the White House
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This note was uploaded on 04/28/2008 for the course ECON 201 taught by Professor Dr.sharma during the Spring '08 term at Ohio State.

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econ article 1 - Alexandra Williams Economics 201 Gill...

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