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View Diary: Occupy the tax code: why taxing the rich will make the economy soar (79 comments)

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  •  The Analysis in Diary is highly suspect (2+ / 0-)
    Recommended by:
    johnny wurster, WI Deadhead

    People who follow the US economy even casually understand the US GDP is about $15 trillion/yr  see here

    in a comment below, the diary's author writes:

    For 2009: GDP 55,755.70, Government spending 11,670.10, ratio 20.9%.
    For 2010: GDP 58,106.20, Government spending 12,011.20, ratio 20.7%.

    By the author getting such a basic part of the data grossly wrong, one cannot have confidence in the author's competance for any part of the diary's analysis concerning GDP or any other economic issue.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Fri Dec 30, 2011 at 11:25:11 PM PST

    [ Parent ]

    •  It's quite a bit of an oversimplification, but (1+ / 0-)
      Recommended by:
      Keith Pickering

      overall I think he's on the right track.
         It's well known that a major fault of modern economics is not taking class into account. That a rich person isn't going to spend money the same way a poor person is.

       I'd go one step further: recently a lot of economists were complaining about a "global savings surplus". Which I dismissed when I first heard it. After all, who has extra money that you know?
         But then I got to thinking. The 1% are getting richer every day. The wealth disparity is growing larger every day. That small percentage have to invest that enormous amount of money somewhere.
         So what you have a huge amount of un-productive cash washing around the world, looking for the highest rate of returns possible. When the amount of cash gets that large, it becomes a destabilizing force in global economics.

        Thus taxing the rich would also contribute to calming the global financial system.

      "The rich are only defeated when running for their lives." - C.L.R. James

      by gjohnsit on Sat Dec 31, 2011 at 07:08:05 AM PST

      [ Parent ]

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