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You suggest "more growth" and "lower taxes" as a solution. The former is more of an objective rather than a solution; every single government wants "more growth
by summerlight 8y ago
You suggest "more growth" and "lower taxes" as a solution. The former is more of an objective rather than a solution; every single government wants "more growth" but how to achieve that is a completely different story. About "lower taxes", South Korea already tried that option for 9 years and it had spectacularly failed. (BTW, income and corporation tax in SK is generally much lower than the US, so apparently "even lower tax" that you might suggest won't likely work.)
- cryptonector 8y agoThere's certainly a point where lowering tax rates cannot help much (diminishing returns). But raising tax rates from that point might have an outsize effect, depending perhaps on how much (but still assuming not that much of a change). As to growth, you're absolutely right that it's not as simple as wishing it. But the same is true for raising wages: sure, it's trivial to raise the statutory minimum, but for that to have the intended effect is a different story, unless the intended effect was more unemployment.