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Why are you trying to maximize dollar extraction from the consumer via taxing something cheaper, rather than, I don't know, doing something about the sector hoo
by salawat 11mo ago
Why are you trying to maximize dollar extraction from the consumer via taxing something cheaper, rather than, I don't know, doing something about the sector hoovering up those dollars under the guise of "leave no dollar on the table?
And don't tell me it can't work. If that can't work, it makes no sense to harm the electronics with a 10000% tax. At that point you're just drawing a line and saying "Poor people shouldn't have nice things. Let them die."
- kelseyfrog 11mo agoBecause of the Baumol Effect[1]. People can live without TVs, but the inability to receive health care ruins, and in many cases ends, lives. This is Economics 101. [1] https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect
- salawat 11mo agoEconomics 101 also notes that your view is still quite lacking, as the Baumol effect is far from being settled as 100% the bloody cause, as there is significant non-supply side effects that may account for shifts from the progressive sectors to the stagnant sectors, not the least of which being off-shoring. The dismal science continues to deliver hand waving and prognostications more than satisfactory answers.
- kelseyfrog 11mo agoIt sounds like any economic answer wouldn't suffice because it would have to explain 100% of the effect. Did I get that right?