From a policy making perspective this does not mean states should never try to create a better business climate by lower business costs, but it does mean the trade-off between growth and inequality should be factored into that policy making process. It should be understood that the price of lowering business costs is not just less tax revenue but also increased inequality.
|By: DSWright Thursday July 17, 2014 7:55 am|
|By: DSWright Friday April 19, 2013 8:18 am|
A paper by Kenneth Rogoff and Carmen Reinhart entitled Growth In A Time Of Debt became the intellectual backbone for the austerity movement/plutocrats and their apparatchiks in Washington and elsewhere. Now a graduate student has discovered a major excel error in Rogoff and Reinhart’s research which skewed the data to support their thesis and found that when that error was corrected their data actually supported the contrary view.
|By: Dean Baker Monday January 21, 2013 11:05 am|
Joe Stiglitz had an Opionator piece in the NYT arguing that inequality was bad for growth. Krugman responded by taking issue with a couple of the points raised by Stiglitz: that upward redistribution of income leads to fiscal problems and that upward redistribution of income leads to stagnation.
|By: James K. Galbraith Sunday January 29, 2012 1:59 pm|
The Benefit and the Burden begins with a short history of American taxation and a description of the core issues in the definition of income. It follows with some discussion of the principal economic arguments that have flowed around the relationship between taxes, growth and fairness, and then proceeds to examine the issues surrounding preferences in our tax code – for housing, for charitable contributions, for capital gains, and the problem of taxing corporate profits. It ends with a discussion of reform proposals, and Bruce makes his case for a VAT to close the revenue gap and fund the government that we will need, among other things, to support an increasingly elderly population.