Do tax cuts stimulate the economy?
Are tax cuts good for the economy?
When President Ronald Reagan began his first term in 1981, the US economy was struggling. Unemployment rates were high and getting higher, and in 1979, inflation had peaked at an all-time high for peacetime. In an effort to combat these issues, Reagan's administration introduced a number of economic policies, including tax cuts for large corporations and high-income earners. The idea was that tax savings for the rich would cause extra money to trickle down to everyone else, and for that reason, these policies are often referred to as trickle-down economics. From the 80s to the late 90s, the US saw one of its longest and strongest periods of economic growth in history. Median income rose, as did rates of job creation. Since then, many politicians have invoked trickle-down theory as a justification for tax cuts— but did these policies actually work, either in the sense of stimulating economic growth, or in terms of improving circumstances for Americans? Would they work in other circumstances? To answer these questions, the main things to consider are whether the impact of the tax cut on the government’s tax revenue is harmful, whether the money saved in taxes actually stimulates the economy, and whether stimulating the economy actually improves people’s lives. The idea behind tax cuts is that if taxes are too high, people will be less willing to work, which would ultimately decrease tax revenue. So at a lower tax rate, the government might actually gain more tax money that it can theoretically put towards improving life for its citizens, because people will work more when they get to keep more of their earnings. Of course, there’s a limit to how much the government can cut taxes: at a zero tax rate there is no tax revenue regardless of how much people are working. So while cuts from a very high tax rate might be fine, cuts from a lower tax rate might be counterproductive, hampering the government's ability to accomplish crucial things. Tax rates were extremely high when Reagan took office. His administration cut the highest income tax bracket from 70% to 28% and corporation tax from 48% to 34%. By comparison, as of early 2021, those rates were 37% and 21% respectively. When tax rates are lower, tax cuts for the wealthy can be harmful. For example, in 2012 to 2013, lawmakers cut the top tax-rate in the state of Kansas by almost 30% and reduced some business tax rates to zero. As a result, the government’s balance sheet immediately fell into negative territory and did not recover, implying that wealthy individuals and companies did not invest back into the economy. In short, the money did not trickle down. This appears to be a trend: in a study over multiple periods of history and across 18 countries, The London School of Economics found that cutting taxes increased the wealth of the top 1% of people, but had little effect on the economy as a whole. In order for tax cuts for the rich to truly stimulate the economy, they would have to spend the saved money putting it back into, for example, local businesses— but this isn’t what happens in practice. No economic policy operates in isolation: each time and place is unique with multiple policies in place simultaneously, so there is only ever one test case for each set of scenarios. This makes it difficult to deliver definitive rulings on whether an economic policy worked, whether something else might have worked better, or whether it would work in a different situation. And yet, rhetoric around trickle-down economics, both during the Reagan era and since, often promises something definitive: that spending by society’s richest members on things other than taxes directly improves the financial circumstances of the less wealthy. And there’s not much evidence to support that.
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6 myths about the Middle Ages
Europe during the medieval period. Where unbathed, sword-wielding knights defended chaste maidens, believed the Earth was flat, ate rotten meat, and tortured their adversaries with gruesome weapons However, this is more fantasy than reality. So, where do all of the medieval myths originate? And how did they actually appear? The 1,000-year period known as the "Middle Ages" begins with the fall of Rome in the fifth century and ends with the Italian renaissance in the fifteenth century. The term has also been used to describe other parts of the world, but traditionally it has only been used to describe Europe. One confusion is that middle age individuals were all uninformed and uninformed. For instance, a 19th-century biography of Christopher Columbus made erroneous claims that medieval Europeans believed the Earth was flat. The Earth's shape was not much of a topic of debate, despite the fact that many medieval scholars consider it to be the center of the universe. “On the Sphere of the World” was the title of a well-known text from the thirteenth century. In addition, as monasteries, convents, and universities were established during the Middle Ages, literacy rates gradually increased as well. Additionally, ancient knowledge was not "lost"; The study of Greek and Roman texts continued. In the 1930s, a British book made the idea that medieval people ate rotten meat and covered it up with spices. It used laws prohibiting the sale of rotten meat as evidence that it was frequently consumed and misinterpreted a medieval recipe. In fact, salt curing of meats was a safe way for medieval Europeans to preserve meats while avoiding rancid foods. Spices were well-liked. However, they frequently cost more than the meat itself. Therefore, anyone who could afford them could also purchase fresh food. In the meantime, the French historian Jules Michelet of the 19th century described the Middle Ages as "a thousand years without a bath." However, public bathhouses were well-used in even small towns. Soaps made of ash, scented herbs, and animal fat were used to lather people up. They also used spices and herbs, pastes and powders for teeth cleaning cloths, mouthwash, and mouthwash. What about medieval methods of torture? A group of what were described as "terrible relics of a semi-barbarous age" went on tour in the 1890s. They include: the Iron Lady, which entranced watchers with its spiked entryways — yet it was created, conceivably only a long time previously. Also, there's no sign Iron Ladies really existed in the Medieval times. In contrast, there was a thing called the "Pear of Anguish," but it only existed later, so it couldn't have been used for torture. It could just have been a shoe-stretcher. In point of fact, a number of what appear to be medieval torture instruments are far more recent creations. Middle age official procedures were generally speaking less horrifying than these contraptions recommend. They included fines, jail time, humiliation in public, and some forms of corporal punishment. Although torture and executions did occur, particularly violent punishments like drawing and quartering were typically reserved for high treason offenses. However, chastity belts must have existed, right? Most likely not. They were first mentioned by a German engineer in the 15th century, probably in jest, along with fart jokes and an invisibility device. They were then popular satirical subjects that were later misinterpreted as medieval reality. The interest of people in later times has influenced how people think about the Middle Ages. During the 15th and 16th centuries, scholars who were biased toward the Classical and Modern periods that followed popularized the term as well as the derogatory term "Dark Ages." In addition, medieval people were depicted as superstitious and irrational by Enlightenment thinkers, who celebrated their commitment to reason. Romantic European nationalist thinkers romanticized the Middle Ages in the 19th century. They depicted disengaged, white, Christian social orders, underlining stories of gallantry and marvel. Yet, knights assumed negligible parts in archaic fighting. Additionally, the Middle Ages witnessed extensive interactions. Byzantine, Muslim, and Mongol trade routes brought ideas to Europe. Additionally, numerous merchants, intellectuals, and diplomats traveled to medieval European cities. The most widespread erroneous belief is that the Middle Ages were one continuous period in European history. Initially characterized less by what they were than what they weren't, the Medieval times turned into a ground for dueling thoughts — energizing more dream than reality.
By Factual Frenzyabout a year ago in Education
Lost in the Amazon: A Girl's Survival Tale
In the heart of the Amazon rainforest, where the canopy stretches endlessly overhead and the chorus of wildlife fills the air, a young girl named Maya found herself in an unexpected adventure. She was on an expedition with her parents, renowned biologists studying the flora and fauna of the region. But as they ventured deeper into the dense foliage, disaster struck.
By Ekombe hau4 days ago in Education
A Flower Song
Apparently the Aztecs, Toltecs, Chichimecs and other Mexica were crazy about poetry. Despite the book-burning, slaughter, and epidemics that characterized the early stages of the Spanish conquest of the empires of Mexico, some hundreds of poems from the height of their tradition come down to us in Classical Nahuatl, preserved by Nahua and Spanish scholars of the 16th century. One of the most famous poets, Nezahualcoyotl, was a sage-king who opposed the cult of human sacrifice associated with Tezcatlipoca, God of the Smoking Mirror, and favored Quetzalcoatl, the Feathered Serpent. Flowers and feathers were the favorite offering of the Plumed Serpent. Moreover, flowers and feathers are a metaphor for poetry. Individual words, scattered petals, the down of tropical birds. The temples of blood sacrifice could be transformed into temples of flower and song. A sublimated offering to the Heart of Earth and the Heart of Sky encapsulated in the Classical Nahuatl kenning for poetry: in xōchitl in cuīcatl, meaning, "the flower and the song." The following poem is part of a longer work, and is in a state of flux, so take the waters as they flow:
By Rob Angeli4 days ago in Poets
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