Don’t believe economic myths. Get the truth!

17 Dec, 2017 at 20:05 | Posted in Economics | 2 Comments

2 Comments

  1. With taxes being shrunk in the US, they won’t be able to afford larger governmental employees. Trump’s tax decision is the path to disaster because the government must either release more effective money which is inflammatory, or borrow and spend more money which makes the amount of savings and investment less. Both results are hopeless.

    Comment by David Harold Chester— 18 Dec, 2017 #

  2. Myth 1: not quite. The real job creators are the future rich.
    Myth 2: not quite either. Some branches of the government are needed to ensure the rule of law (and thus a free functioning market), others are not.
    Myth 3: mostly right. We should not worry about the size of the government, but whether the marginal tax dollar is spent more effectively by the government or the citizen it was taken away from. Both the private and the public sector sometimes spend money stupidly. But when the public does it, everyone has to bear the costs. That’s why, when in doubt, spending decisions should be taken at the lowest level possible, the citizen. Then, the incentive to get it right is much bigger. And, as every economist knows, incentives matter.

    Comment by kronrod— 17 Dec, 2017 #


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