06-02-2015, 10:27 AM
Ok, perhaps I didn't fully understand your first reply, my mistake. It's probable that there is some room for higher marginal income tax rates without that hurting the economy too much, and if it is spend at stuff that improves the supply side (infrastructure, fundamental research, education, etc.) there is probably a net benefit, could even be considerable although the devil is probably in the details.
I was fairly early (2012) in suggesting rising inequality is partly responsible for a demand shortage (which falling bond yields and inflation since the 1980s suggest has been gradually developing, being somewhat masked by a credit binge), so I am sensitive to that argument. It isn't the whole story though.
I was fairly early (2012) in suggesting rising inequality is partly responsible for a demand shortage (which falling bond yields and inflation since the 1980s suggest has been gradually developing, being somewhat masked by a credit binge), so I am sensitive to that argument. It isn't the whole story though.