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if bank executives don't consume a smaller portion of their income than anyone else, it follows that the best form of keynesian stimulus is tax cuts for those e
by exit 15y ago
if bank executives don't consume a smaller portion of their income than anyone else, it follows that the best form of keynesian stimulus is tax cuts for those executives?
- rvkennedy 15y agoBut they do. Because unlike most people, bank executives don't spend most of what they earn on housing, clothing and feeding their families. Even in the best of times, the rich spend less of their income than the others. Right now, they're spending even less than usual, particularly in terms of investment, because of the bleak economic outlook.
- exit 15y agoyes. i agree. i don't follow the argument i was reply to at all.
- yummyfajitas 15y agoThe purpose of Keynesian stimulus is to stimulate spending. Most proponents of Keynesian policies oppose directing stimulus to the rich people on the theory that rich people spend the smallest fraction of their income (i.e., they save the most).
- exit 15y agoi don't see how that shows that "the best" form of stimulus would be to lower their taxes.
- danssig 15y agoHe's saying that if the rich are spending more of their money in the economy then we should be giving them even more tax breaks so they could spend even more in the economy. Probably the reason you didn't get what he meant was because it's utterly nonsensical.