Thursday, December 17, 2020

Study of 50 Years of Tax Cuts For Rich Confirms ‘Trickle Down’ Theory Is an Absolute Sham — Kenny Stancil

The Economic Consequences of Major Tax Cuts for the Rich (pdf), a working paper published this month by the International Inequalities Institute at the London School of Economics and written by LSE’s David Hope and Julian Limberg of King’s College London, examines data from nearly 20 OECD countries, including the U.K. and the U.S., and finds that the past five decades have been characterized by “falling taxes on the rich in the advanced economies,” with “major tax cuts… particularly clustered in the late 1980s.”

But, according to Hope and Limberg, the vast majority of the populations in those countries have little to show for it, as the benefits of slashing taxes on the wealthy are concentrated among a handful of super-rich individuals—not widely shared across society in the form of improved job creation or prosperity, as “trickle down” theorists alleged would happen.

“Our research shows that the economic case for keeping taxes on the rich low is weak,” Hope said Wednesday. “Major tax cuts for the rich since the 1980s have increased income inequality, with all the problems that brings, without any offsetting gains in economic performance.”...
Naked Capitalism
Study of 50 Years of Tax Cuts For Rich Confirms ‘Trickle Down’ Theory Is an Absolute Sham
Kenny Stancil, staff writer at Common Dreams
Originally published at Common Dreams

Another screed by someone that doesn't know what he is talking about.

Project Syndicate
Hamilton Beats MMT
Todd G. Buchholz,  former White House director of economic policy under President George H.W. Bush and managing director of the Tiger Management hedge fund, and recipient of the Allyn Young Teaching Prize by the Harvard Department of Economics


Sky News is lost in the blue.
Every dollar borrowed today has to be repaid from forward consumption, and that might not affect you, but it will impact your children or your grandchildren.

"That's because they'll be paying more to get less, simple because we, collectively, demanded more right now.

"I think that's rather selfish, and I think that's morally wrong.
Sky News
It must be reminded that 'debt really does matter'
Sky News host Cory Bernardi

Actually, these are better than the economic and financial gibberish I was reading yesterday from a hedge fund manager. Based on his understanding, one would be better advised to seek advice from monkeys throwing darts.

Another good thing about MMT is that it is flushing out the nuts.


Andrew Anderson said...

Another good thing about MMT is that it is flushing out the nuts. Tom Hickey

True but the MMT School, the so-called experts wrt fiat, insists on retaining the obsolete Gold Standard banking model. How nutty is that?

Don't be too smug Tom; the MMT School has major flaws* of its own, even apart from the major ethical flaw of supporting increased privileges for private credit creation.

*E.g. treating a trade deficit as a blessing rather than a potential hollowing out of a Nation's productive capacity

Mike Norman said...

Buchholtz got owned by Kelton and Galbraith.

Matt Franko said...

Well it flushed out you....

Unknown said...

Please promote link: arguments for taxing land/location rent