Monday, November 15, 2010
Incentives Matter
If you believe as I do that people respond to incentives, then here's an interesting thought experiment. Imagine a world where the poor pay zero taxes. In such a world, would government be more or less likely to create jobs for poor people? I'd say they'd be less likely because what the government really cares about are revenues, and if more people working doesn't generate any additional revenue, then why would government care if they worked or not?
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1 comments:
More Common sense! I think I like this blog....
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