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If country B in that case has extreme inequality it may actually struggle with economic growth as there isn’t enough purchasing power among the poor to drive co
by burlesona 6y ago
If country B in that case has extreme inequality it may actually struggle with economic growth as there isn’t enough purchasing power among the poor to drive consumption which generally is what drives corporate profits.
In that case it could be that country A outgrows country B because the restributive policies have a stimulus effect.
The thing is, we don’t know how fast society-wide experiments will turn out.
In the US, this is where federalism is advantageous. Allow different states to try different policies and then measure the outcomes. Over time, winning policies will emerge and spread across the country.
- thyrsus 6y agoCould, say, California tax corporations net worth at a percentage of the revenue derived from California? (This is a downward extrapolation from the original article's proposal to deal with assets hidden overseas.) I'm queasy about the current SCOTUS's assent.