A study by Moody’s Economy.com shows something that I’ve long read about: policies that benefit the middle and lower income Americans have the best impact on the economy. That’s because they spend it all, which then generates further dollars in GDP as businesses profit and spend their profits and so on down the line. Investment income is important, don’t get me wrong.

Outside of terrorism (and I’m not kidding about this), I think this is the biggest national security issues facing our nation. Lots of countries that have cross-purposes to our’s have lots of U.S. Treasuries…

Excerpt:

But every economic recovery offers good news. That’s why we call them recoveries. The business cycle is, after all, a cycle. When the cycle is turning down, the news is bad. When it’s turning up, news is good.

The best way to find out whether the Bush tax cuts have really helped is to compare the current recovery with every previous recovery since World War II.. What do we find? Real revenue growth in this one is trailing the average of all previous recoveries. So is the rate of new investment. So is the rate of job creation.
You don’t have to have total recall to remember that after Bill Clinton raised taxes and cut spending, we had faster revenue growth than now, a higher rate of new investment, more jobs, and a more rapidly-vanishing deficit.