Subject: Re: Foreign exposure
Jim,
About the Kalecky Levy thing, not sure I buy this:

"If the government funds the tax cut by reducing other expenditures by the same amount as the lost taxes to keep the deficit unchanged, then in aggregate, the corporate sector will lose that amount in revenue. Consequently, the boost in profits from the tax elimination would be negated by the reduction in revenue, effectively nullifying any net gain in profits."

There is something goofy in the way they balance the equation so neatly ignoring the time lag between cause and effect. Their theory has to be wrong.