Archive for April, 2015

How Tax Cuts Could Help

Wednesday, April 29th, 2015

New news from the “Isn’t Actual Data Wonderful?” department:

Pedro Nicolaci Da Costa posted on the Wall Street Journal’s Capital Markets column, saying in part:

Tax cuts are an effective way to bolster a weak economy and create jobs—as long as they are targeted at the bottom 90% of income earners.

His position is amply supported by empirical data.

The reason for this effect is simple enough: the bottom 90% of earners are most likely to spend the windfall, creating the virtuous cycle of increased demand begetting new investment in supply. It has to start with demand, though. Businesses know perfectly well that if people can’t buy, there’s no point building another factory or retail outlet.

You can read the article and follow the links to the supporting data at:

Tax Cuts Boost Jobs, Just Not When Targeted at Rich

Longsplice rope

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