Wednesday, May 13, 2015

Wealth Redistribution is Not a Recovery Plan

Richard Ebeling emails:

Dear Bob,

I recently appeared on “The Jerry Doyle Show,” a nationally syndicated radio talk show, on the topic, “Wealth Redistribution is Not a Recovery Plan.” The following link is to my segment on the program (it runs for about 20 minutes):

I challenge and criticize Keynesian economists who argue that “the rich” save too much and the lower income groups don’t have the income to spend enough to “stimulate” the economy through greater consumer demand.

I explain that the source of jobs, investment, capital formation and rising standards of living looking to the future is savings, not spending. And why raising taxes on “the rich” will not only run the risk of reducing the savings without which long-term investment cannot occur, but will retard the job creation that Keynesian economists say they want to expand.

Lower taxes, reduced government regulation of business, and a non-inflationary environment are the policies most likely to grow the economy and assure that job creation improves.


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