Now that the Tax reduction has been passed as the theory goes: more money for the people to spend - creates a demand fore more goods – companies will hirer more people fulfill those goods and services. But according to what I hear, we get a lot of are goods from outside the U.S.
Dose that mean that Korea, China, Japan, and any other country that I have overlooked will be employing more people to fill the demand for those goods (some how I don’t feel any more job secure).
It’s not really the “more money to spend” in any direct way, because of course when the government spends money, that ends up in the economy as well. It’s that people with lower tax rates have better incentives to spend and work, which creates NEW value that didn’t exist before.
And why should you care more about an American worker than a Japanese one? Anyway, while we do get many goods from outside of the U.S., it’s a lot less than you’d think. And if we’re buying them at all, that must mean that SOMEONE in the U.S. is reaping the benefit of it: usually the consumers.
Jobs are a function of demand. More spending money helps demand as well as investment. Production is driven by demand but it is affected by interest rates. Interest rates are affected by investment cycles. Investment cycles are driven by blondes in sports cars, in a fog, while applying makeup.
A tax reduction is a good thing in the short run as long as it stops a recession. Long-term tax cuts require a reduction in spending which is something every human being understands (that’s why politicians don’t get it.)
Take the tax cut and divide it by the number of years over which it takes effect (we’re not talking about a 1 yr tax cut-- I think it’s 5 or 10 yrs or something like that). Then divide that number by the annual GDP of the US, which is something like $10B. Now compare that number to the size of a mouse’s testicles.
It’s even smaller when you use the actual GDP, which is around 10 trillion dollars! 
The real worry here is that, instead of using the cash resulting from the tax cut for increased spending the average consumer will use it to pay down some long-standing debt like credit card or automobile or home equity loans. If that occurs then we won’t see a bump in spending on consumer items. Instead the tax cut will be used to pay for items that have already been produced. And that won’t stimulate production at all and we’ll be in the same fix.
JC:
“I support any tax cut, at any time, for any reason.” -Milton Friedman
Gov’t is always going to spend every dime it takes in, and then a bit more. If the only way to constrain that spending is to cut back on “revenue”, so be it. Also, even the money that is used to pay down debt doesn’t just disappear. Better that it is in the private sector than in some gov’t bureaucrat’s bloated budget. (How’s that for alliteration?:))
Anyone who says the fed’s 2 trillion dollar budget is too small needs to count the zeros sometime (both in the dollar figure and the ones controlling those dollars).