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Oct
04

Higher Taxes on Top 1% Equals Higher Productivity

Michael Hudson: History of US shows economy grows when top tier tax rates and workers wages are high.

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24 comments

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  1. Skibum Willy says:

    In “Occupying Chairlifts” a simple rule tweak on inheritance ends up changing the direction and purpose of modern human life! Here’s a fair way to transition forward to where we’re rewarded for cooperating and creating instead of competing and conquering.
    It’s something specific we can demand.? If this isnt the best answer, at least we’re thinking about what might be. Are we really just this close to having it work right?
    Oh yeah, it’s a Ski movie! “Occupying Chairlifts” on Youtube!

  2. gwynedd1 says:

    Still a liberal agenda only in a James Madison sort of way. Scary isn’t it? He is talking about Lockean and Adam Smith concepts and people see it as Marxist. I have a strong vein of Georgism myself but do? find Ricardo’s influencing on finance to be the one big flaw of the classical era. Keynes put the question and Minsky answered it.

  3. gwynedd1 says:

    No doubt but Marx had an interesting observation that government debt cost the wealthy nothing since they passed it between each other just like cash. The problem with government debt is it is so liquid it does not cause those who surrender their cash to abstain, which is the? idea behind the loan.

  4. zalida100 says:

    “..The US actual turns a profit off? their foreign aid…”
    You mean US gov?
    What kind of profit? Of course someone believes they will profit, otherwise it wouldn’t happen.
    Foreign Aid is more or less, just taking money from poor people in “rich” countries & giving it to rich people in “poor” countries.
    I would doubt that anyone paying the cost would likely be profiting from it. (The fact that it’s not voluntary is kinda a clue that it’s not profitable to the? payer).

  5. WilhelmDrake says:

    It’s called classical? economics.

  6. WilhelmDrake says:

    I agree.
    But generally the word money is restricted to the non-interest bearing? debt issued by the government.

  7. gwynedd1 says:

    I believe also that interest bearing sovereign debt? acts like what we call money.

  8. WilhelmDrake says:

    The US actual turns a profit? off their foreign aid.

  9. WilhelmDrake says:

    He’s not using the word rent as in? when one rents a house.
    He’s talking about economic rent, something entirely different.

  10. WilhelmDrake says:

    Never put your eggs? in ones basket.

  11. WilhelmDrake says:

    There’s no contradiction.
    The idea was not to tax labour and production but instead for the tax burden to fall on economic rents (which have the added benefit of keeping price down and in line with? actual production costs).
    We now do the opposite, we have freed economic rents (income not derive work and hence deemed unearned) from taxation and thrown the burden onto labour, business & industry (ie we tax production, adding to prices)

  12. WilhelmDrake says:

    He’s not talking about people renting land, he’s referring to the concept of economic rent, something entirely different.
    Economic rent is usually defined as the element of price not attributable to? the cost of production. A return over and above opportunity costs, or the normal return necessary to keep a resource in its current use.
    Think of owning a private toll booth on publicly maintained roads & bridges.
    You collect rents while the public bears the costs.
    The epitome of a rentier..

  13. WilhelmDrake says:

    Money has always been? government (non-interest bearing) debt.

  14. gwynedd1 says:

    That is because even then government debt was so liquid it acted just like money. Now all money is? government debt. Pay off public debt and it lowers the money supply.

  15. gwynedd1 says:

    The? only thing that makes trickle down work is propaganda. What forces rich people to add supply? Adding supply lowers marginal utility which isn’t in the best interests of the seller if they can form a cartel. Then you have things which can never be supplied that they buy like real estate. More money for the rich often results in more toll booths. Rent seeking is the gaping hole in supply side. Bloating farm land real estate costs adds no supply.

  16. evan903 says:

    Through propaganda? From who? Who would have the money to fund that propaganda? You Are A Joke. Corporations benefit from? spreading propaganda to lower taxes. They pay lobbyist, fund economic departments at universities, donate billions to the Dem and Republicans, fund main stream media advertisements and main stream media corporations benefit from lower taxes. Your information most likely came from the Koch brothers.

  17. DavidByrne85 says:

    Thanks I needed? a good laugh

  18. faekz says:

    You people commenting , seriously ? Trickle down does work but propaganda made it a dirty word. What really works is free markets low taxes and low regulation and can’t forget small govt. top 1% if taxes rise you think they actually pay that ? No ?!? That’s why history shows good times with 70-90% tax on high earners they didn’t pay it duh. FDR and Hoover and the fed created the Gd and FDR n Hoover did make it worse. There was a huge stock market crash in early 20s and it recovered on its own in

  19. Quixote1818 says:

    The junk Economics of today is fully funded by guys like the Koch brothers and their minions in both the Republican and Democratic parties. Clearly history shows trickle down economics don’t work other than to make the? top 1% millions of times more powerful than everyone else. Absolute power corrupts, absolutly!

  20. Simon F says:

    FDR didn’t create or extend? the Great Depression. He helped us slowly recover. In fact, when he cut spending for the New Deal in 1937 the economy dipped down, and that was the cause of the “recession within the Depression.”
    !932 was no recession. It was a desperate situation. FDR restored confidence with the “bank holiday” and the rest is history.

  21. Kevin Wayne says:

    Hey, do you? have a source on this? I’ve found stuff on the Tax rates easily enough, but not on the corresponding GDP. Thanks.

  22. Kevin Wayne says:

    To my understanding, WWII was a boom for the Military Industrial Complex. The high tax rate that followed was an attempt to get some of those resources back into the economy. The rich may not have paid that much due to loopholes, but that’s why that high top rate was needed. To get? around those loopholes and recover assets by hook or by crook.

  23. MattDay2u says:

    @chickatawbutt – FDR didn’t create? the Great Depression – he just extended it well over a decade. The Federal Reserve created a depression from the recession of the time. That noted, yeah, an FDR bust – how telling.

  24. DebisisRobustus says:

    huh??

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