Thursday, December 3, 2009

Felix Salmon and Political Science!

HT Marginal Revolution

Felix wants to mix economics and politics:

"Given the government’s insatiable appetite for cash, it’s only natural that it would prefer to tax plutocrats, spending some of that money on poorer Americans, rather than move to a world where poorer Americans earn more (but still don’t pay that much in taxes), and the plutocrats earn less, depriving the national fisc of untold billions in revenue."

The equilibrium is here in what Felix says, the balance between smaller government and progressive taxes. The problem, once again, is the lack of precision, we can never get that close to the equilibrium.

By the way:
fisc n. The treasury of a kingdom or state.

Felix taught me a new word, I can still learn!

No comments: