The prime minister is wrong to pretend that it’s the economy’s loss if high-income earners have less money to spend
At a time when the number of people studying economics is at a record low, the number of politicians citing economics 101 seems to be at a record high. Take our current prime minister, Scott Morrison. When asked to provide evidence that closing tax loopholes and collecting more revenue would weaken the economy, our policy maker in chief declared, “I think it’s just fundamental economics 101”.
Over the past 25 years, I have taught countless courses on introductory economics for undergraduates, postgraduates and even senior bureaucrats, and I confess that not once have I taught the “lesson” that collecting taxes weakens economies. In my defence, I have never read such a statement in any economics textbook I have used.
Continue reading...from The Guardian http://bit.ly/2UK1gbs
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