Five False Premises about Economic Recovery has a number of interesting things to say about the US and UK governments’ current approach to the financial crisis and attempts to stimulate recovery. Mostly that they are getting it wrong.
On the argument that we should not tax the rich because they are wealth (and therefore growth) creators, the growth rate has been relatively static through the last few decades, while “wealth creator” wealth has increased. The killer quote:
So, figuratively speaking, the Americans have been paying their â€œwealth creatorsâ€ two to three times more than before to get the same outcome. What makes people think that they will behave differently this time around?