This is not a challenge issued in anger, or in haste. I do not know if the following argument holds water or not. I’m asking you to find the holes in this argument.
Statement: Welfare fraud is better for the economy than tax cuts for the wealthy.
Argument: People who defraud any social program are usually doing so because they really need the money. Whether or not they deserve it is, of course, a separate argument. But let’s put that to one side. Common sense dictates that a large percentage of any money which is defrauded from various social programs will be spent on consumer goods, while some is lost to illegal activities. Any money spent on any consumer good benefits the economy, as it creates demand. Demand creates jobs. Jobs provide people with disposable income, which creates demand by spending on consumer goods.
Conversely, as we have read more and more recently (see recent posts for supporting data, it’s late and I’m tired), the super-elite have taken their money off-shore to avoid paying taxes to their home countries. As much as $21 trillion has been squirreled away in hidden bank accounts. The more money given to the super-wealth, the more is taken out of the economy all together. Therefore the money is not spent, and no demand is created through tax cuts for the wealthy.
Its seems to me that this is a fundamental part of capitalism, and we have done the opposite for thirty years.
Please, have at it. There’s more I will think of, I am certain.