Quote Of The Day

“I have an even better argument against tax cuts for the rich. According to Bernstein’s logic, they don’t even work for the rich. If you look at the mean income for the top 20% of all families, it also shrinks between 1989 and 1992, grows between 1992 and 2000 and falls between 2000 and 2010. So those tax cuts for the rich didn’t even help the rich. Kind of ruins the class warfare story, doesn’t it? (I hope to get some graphs up on this in a later post.) The same results hold for the top 5%. Data are here–use the numbers corrected for inflation. Maybe, just maybe, other factors than tax policy explain our financial well-being.” — Russ Roberts

2 Responses to “Quote Of The Day”

  1. Jon says:

    That’s the story from the left as I understand it. Tax cuts for the rich hurt the rich as well. Not in the short term. In the long term? Absolutely.

    Take that quote from Roubini that I just provided for you. As compensation shifts from labor to capital the result is lack of demand, which ultimately harms the rich as well. The system eats itself. That’s a point Krugman hammers constantly.

    Roberts is right that other factors can be at play. But it’s not an argument against the left that tax cuts hurt the rich as well. They say that explicitly.

  2. It’s an argument against the class warfare view though. That was Roberts point.

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