This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.
Which Wealth Tax? (Project Syndicate) Spence supports Democratic candidates Warren and Sanders in pledging for the introduction of a wealth tax, but only if it’s done right and the cash goes to the bottom 50%. [Bearish US stocks]
How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class (Blair Fix) A new paper on inequality claiming that the rich of the world are different not because they are more productive or can exploit workers, but because of their hierarchical power or i.e. greater command over subordinates.
The Great Gatsby goes to College: Tuition, Inequality and Intergenerational Mobility in the U.S. (Damien Capelle) Finds that unequal access to higher education in the US has led to increases in returns to human capital, heightened income inequality, and has increased tuition fees and stagnated the enrolment of low-income students.
Some Income Tax Data on the Top Incomes (Conversable Economist)Finds the top 50% pays almost all the federal income tax whereas the very top income brackets get away with proportionately less. However, simple math shows that taxing the rich more won’t be enough to balance out the $800bn yearly budget deficit.
MMT Heaven and MMT Hell for Chinese Investment and U.S. Fiscal Spending (Carnegie) Argues thatthere aren’t inherently unacceptable levels of government debt If the government can spend the additional funds in ways that make GDP grow faster than debt. That way, there wouldn’t be runaway inflation or the piling up of debt.
How to Argue for a Wealth Tax (Marginal Revolution) Estimates that a seemingly benign 2% increase in the wealth tax in the US ends up stacking up to a 50-70% net capital gains tax, which can’t be sustained. Proposes a higher consumption tax instead.
The Great Gatsby goes to College: Tuition, Inequality and Intergenerational Mobility in the U.S. (Damien Capelle) Finds that unequal access to higher education in the US has led to increases in returns to human capital, heightened income inequality, and has increased tuition fees and stagnated the enrolment of low-income students.