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No expectation of demand, no investment, no matter how many tax breaks you give them.

True, but this tax cut would lower the internal rate of return required for investments, and hence increase investment, ceteris paribus. Furthermore, it would shift the economy towards higher capital intensity and hence allow higher salaries as the salary fraction of the total cost mass is lower for capital intensive business. This would, however, amount to industrial policy (gasp! oh noes!).


Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Thu Jan 27th, 2011 at 08:05:16 PM EST
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