The Natural History of Tax Cuts

Just what is the true efficacy of tax cuts?  This is a question with a simple answer but some tortuous details. For those who argue that leaving money in the hands of the people who earn it fails to generate economic and social growth, here are some other simple questions. Did you stoke the embers of the fire in your cave this morning, hone spear tips for a hunt, or wrestle with a hand-hewn yoke and some surly oxen? Or, in a more modern scenario, did you derive your daily exercise by cranking over the Tin Lizzy in your driveway, greet the iceman's knock on your door, or dial up (literally) a friend to chat? Today, the great majority of us live with the benefits of climate-controlled housing, personal transportation and communication, excessive nourishment, state-of-the-art medical care, and universal education – all unimaginable to even the most prescient of our forbears. Where did all this stuff come from? This stuff is the product of capital –...(Read Full Article)