You don’t see how it’s a bad thing for people to have zero incentive to put money back into the economy? Everyone hoarding money and trying to spend as little as possible will surely have good results!
enragedchowder
joined 1 year ago
Do you actually think that 100% a tax burden will always fall on consumers?
It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
It doesn’t make a difference which side you tax. If consumers are taxed then corporations will still feel it through reduced demand for their product. If corporations are taxed, consumers will still feel it through increased prices. The tax burden does not depend on who is taxed, but rather how elastic supply and demand are.
What’s the channel if you don’t mind sharing?
Do you happen to have a link to any of the rebuttals? I watch him a lot so I’m curious.
I’m not even sure what you’re taking about it. But from the worker/anti capitalist perspective, deflation is even worse. The working class, who holds huge amounts of debt like student loans, ends up paying more as the value of money decreases. Imagine all of your student debts increasing in real value over time, on top of the already existing interest rate.