4 ms·
Would more saving and less consumption be good for the country? I'm not saying it's a bad idea for individuals--it's what we do personally--but it seems like t
by Poiesis 17y ago
Would more saving and less consumption be good for the country? I'm not saying it's a bad idea for individuals--it's what we do personally--but it seems like the economy as a whole would stagnate based on my completely unqualified armchair economist opinion.
- rbranson 17y agoYou are correct. Consumption taxes are, in effect, tariffs on commerce. Theoretically, you should try to push these down as much as possible, so that money flows between economic actors with as little burden as possible. A "solution" to the economic burden of income taxes that increases the overhead cost of transactions and encourages hoarding of money is not a solution at all.
- idoh 17y agoThere would be stagnation if the economy is a closed system. But in a world with multiple economies, the ones that channel income into accumulating more income-producing assets will grow their income faster than the ones that don't.