A blog on US politics, Math, and Physics… with occasional bits of gaming

Misconceptions around the effects of taxes and spending

Cutting taxes to put more money in the pockets of wealthy individuals and large corporations does little to improve the economy. If having loads of money meant rich people would hire more people, then high income inequality would correlate with low unemployment. The opposite is true.

The reason for this is that even if they have money, employers don't hire people unless there is work for them to do. Customers increase the demand for labor. Increased cash in employers' hands does not.

Taxing unproductive wealthy individuals’ money sinks does very little to slow the economy. This is why the wealthy should pay taxes at substantially higher rates than people who are barely getting by. Redirecting that money to people who are struggling, or to improve travel, health, communication, education, and other long-term infrastructure is a more effective way to improve the economy than just showering wealthy people with money.

For similar reasons, immigrant and minority communities aren't "stealing your job." They're working, living, and spending here - the same as you - and are thus contributing to the economy. Immigration thus improves your salary and employability.

Dunbar Window

Statehood for Puerto Rico and Washington, DC