Myths of Rich People Creating Jobs
Myth 1 – Lower taxes are the best way to grow the economy.
Bruce Bartlett, an economist in the Reagan administration, compared tax rates in various rich countries in 1979 to each country’s growth rate since than and found virtually no correlation.
Capital gains rates have bounced up and down from 40 percent to the current 15 percent, with no effect on business investment.
Myth 2 – Excessive regulation is retarding business growth.
The National Federation of Independent Businesses reports that lack of sales — lack of demand — beats out everything else. The claim is made that the Obama administration is killing growth by excessive regulation but it has not been a whirlwind of regulatory activity.
Myth 3 – If you unshackle the rich, they’ll rev up the economy.
After-tax corporate profits are currently at an all-time high and corporations are not expanding nor hiring very much.
Zero-Sum Economy: “Night Thoughts of a Baffled Humanist,” by Marilynne Robinson
“The ethos that will bear the best fruit is that we respect, educate, inform and trust one another.”
“Austerity has been turned against institutions and customs that have been major engines of wealth creation.
“Market economics has shown itself ready to devour what we hold dear: culture, education, the environment and the sciences, as well as the peace and well-being of our fellow citizens.”
“The wealth that was once frozen in appreciated value and thawed at the discretion of the owner, in houses notably, is increasingly liquid in the hands of international financial institutions.”
“A zero-sum economy can improve wealth only by depressing costs — wages, safety standards, taxes — by moving wealth away from the general population.”
“Something as valuable as education should not be commodified, parceled up and sold.”
“But the new ideology seems to assume that the public as such cannot legitimately own anything, or obligate the living to anything, for example, to providing the same access to education we have enjoyed.”