Rebalancing

Does Cutting Taxes on the Wealthy Lead to Greater Growth?

105
June 26, 2017

Policies that increase income inequality can in some cases lead to higher savings, higher investment, and greater long-term growth. But, in other cases, such policies either reduce growth and increase unemployment or force up the debt burden. What determines which of these outcomes takes place is whether or not savings are scarce and have constrained investment.

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