Open Left

Flatter Economy (4.00 / 3)

If you remember those multiplier charts everyone kept posting during the stimulus talks, the multipliers all had one thing in common.  The more poorer the recipient of stimulus money the more likely they were to spend it and the better stimulated the economy.

Tickle down is based on having investment money available.  While it is theoretically possible to have an economy where there isn't enough investment money available and trickle down might actually be worth while encouraging, I don't think the U.S. has ever, ever been in that situation.  In fact, our bubble economy of the past couple decades is largely caused by too much investment money around.

The bottom line is a healthier economy is a flatter economy.

---

by: Mark Matson @ Thu Jun 11, 2009 at 14:11:53 PM CDT

Possibly at one time (0.00 / 0)

I don't want to start a holy war here, but I think when the highest tax bracket was 90% is a time when investment money wasn't as readily available.

Maybe someone here can prove me wrong.

---

by: dmineau @ Fri Jun 12, 2009 at 14:39:28 PM CDT

[ Parent | ]