Bill Gates Correlates High Taxes with High GDP

Recently Bill Gates questioned the supply-side, tax-cut economic theory by bringing up that the American period with the highest GDP growth in recent memory, the 60s, also had one of the highest marginal tax rates in recent memory, at 90% (for most of the decade anyway). He was careful not to say that the high marginal tax rate actually caused economic growth, but he brought up the correlation to indicate that GDP growth is not necessarily dependent on low taxes and that high tax rates don’t Read more […]

China Overtakes US as World’s Largest Economy?

According to the International Monetary Fund (IMF), China has just overtaken the US as the world’s largest economy. Of course, this is not in terms of overall GDP, yet. It’s in terms of purchasing power. As an article in Forbes explains: The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns Read more […]