One of the criticisms of the recent tax cut is that most of the corporate tax cuts are likely to go to share buybacks. Rather than trying to deny that, some defenders argue that these buybacks are good for the economy. While buybacks are certainly good for shareholders, we’ll investigate whether they can be considered […]
Entries Tagged as 'Voodoo economics'
April 11th, 2018 · No Comments
December 26th, 2017 · Comments Off on An Unexpected Tax Cut Bonanza
The Trump tax cut could produce more economic stimulus than many economists (ourselves included) expected. This could occur if others copy the example of several big corporations that announced they will share their tax bonanza with employees. Given the increasing gap between employee compensation and productivity growth, it’s about time, as such a model isn’t […]
December 11th, 2017 · Comments Off on Why Trickle Down Doesn’t Work
Tax cuts for the wealthy doesn’t trickle down, at least not in the US, the evidence is clear. Tax cuts for corporations might fare a little better through increased investments by small private companies and self-fulfilling optimism. The idea that tax cuts will pay for themselves hasn’t played out in the past and is even […]
October 17th, 2017 · Comments Off on A Tax Cut For Shareholders
The proposed tax cuts aren’t likely to do much for the economy or the middle class. But they are an important factor in keeping the markets up and are likely to give the stock market another fillip. One could have too much of a good thing though, tax cuts could very well put upward pressure […]
January 14th, 2015 · Comments Off on Is Deflation Caused by Tax Hikes?
Japan’s tax hike, just as in 1997, again sunk the economy, at least temporarily. However, some argue that it’s also responsible for the Japanese deflation, which is a rather odd position to take. We would lay off buying Japanese shares for now, until the economic picture improves and/or the yen resumes its fall. Deflation Caused […]
Tags: Voodoo economics
January 7th, 2012 · Comments Off on Is 25 percent of the world economy fake?
Huh?! The curious world of Austrian economics
August 5th, 2011 · Comments Off on More Voodoo Economics