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One method the United States Federal government has used to stimulate consumer spending has been to?
December 23rd, 2011 | 
Author: Question by Guy: One method the United States Federal government has used to stimulate consumer spending has been to?
1 – increase taxes on imports
2. raise yields on government bonds
3. reduce personal income taxes
4. cut unemployment benefits
Best answer:
Answer by fundie hunter
#2; government doesn’t have control over YTM on bonds.
#1 & #4 would decrease consumer spending.
Know better? Leave your own answer in the comments!
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The one I know that has worked is reducing taxes…but that means less money to give to the losers who sit on their worthless rear-ends and pump out babies all day so tax reductions usually mean tax increases at some point.
phhfftt…let em starve or go get a job…dont get me started.
# 3 reducing personal income taxes stimulates consumer spending.
The government takes less of your money. You get to keep more. You can either stick it in the bank or go spend it. Many people choose to spend it. This creates more demand for the products/services they are buying. This creates a need to hire more people to make the good or provide the service being purchased. This decreases the number of people who are unemployed. Now, more people are working and are spending more money on goods and services. More people are also paying taxes so the government gets more money too.
(Every time personal income tax rates have been decreased in the U.S., government tax revenues have also increased. Do not believe politicians who say that tax cuts cost the government money. This has never proven to be true. Look at the economic statistics. Even under Reagan, tax revenues increased – - unfortunately, spending increased by a greater result – - this is why we had a huge deficit – - it wasn’t the tax cuts, it was the rate at which GOVERNMENT WAS SPENDING MONEY)
When tax rates are reduced, we have a win-win situation. Individuals benefit and so does the government. Remember that the next time some Democrat tries to talk you into voting for a tax increase.