Trade: Engine or Handmaiden of Growth?
48 minutes ago
The welfare state is unsustainable economically, socially and morally.
"The majority (70.4 percent) of main benefit recipients had been receiving a benefit continuously for more than one year."
The long-run perspective in Figure J.7 can tell more than one story. Taking the end of the “great compression” (1950 to 1980) as the starting point, the conclusion is that for the five English-speaking countries in the graph, inequality (understood as the share of income received by the top 1%) increased strongly to 2011. With the 1920s as the starting point, the “great compression” can be seen as the “aberration” and now the distribution has returned to where it was ninety years ago.
Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves via all that extra economic activity that this virtuous cycle will have set in train.My off the cuff response: