Thursday, April 06, 2006

Distribution of Wealth and Growth

Don't have time to expand on this now, but read Jerome's diary. It's really dead on.

Basically, a country with taxation that drives towards a more equitable distribution of wealth will have higher growth than a country with no taxes. That dead weight loss triangle you see in econ 101 isn't the entire picture. If you don't understand why, think about it for a while.

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