Friday, July 30, 2010

Institute for New Economic Thinking

Btw, I contacted George Soros's new Institute for New Economic Thinking (INET), meant to promote change in economics, and they said they won't fund blogs, even heterodox blogs which review textbooks. They also said it isn't a liberal organization, which I guess should be clear from this guy and see harold uhlig here.

I remember when harold uhlig presented an argument that US cap gains taxes were near the laffer curve inflection point when higher taxes would reduce revenue. What was the mechanism? Higher Cap gains in that model dramatically reduce the size of the economy, thereby reducing taxes... Except, cap gains have been cut dramatically since the 90s, and, shockingly, no dramatic growth has ensued.

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