Posted by WARREN MOSLER on July 18th, 2012
At the macro level:
Govt spending equal to taxing is positive for nominal gdp, top line growth, etc.
Taxing removes spending power, but usually not as much as the total tax, as not all of that would have been spent. Govt spending is all spent by definition. So there is usually a ‘positive multiplier’.
Obamacare not only taxes and spends, but it deficit spends (at least according to the pundits), adding a bit more to nominal GDP.
I suggest you trade accordingly!