tag:blogger.com,1999:blog-5806884.post6932060913657847632..comments2023-10-31T03:18:26.963-07:00Comments on Great Guys Weblog: Taxes and GDPBrethttp://www.blogger.com/profile/15063508651955739056noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5806884.post-23448647645594018412007-12-06T15:46:00.000-08:002007-12-06T15:46:00.000-08:00howard wrote: "So our "stationary bandits" are sma...howard wrote: "<I>So our "stationary bandits" are smarter and more efficient than most other places.</I>"<BR/><BR/>My guess is that the stationary bandits are smart and efficient most places. Other places have higher taxes because the private sector is not as efficient so the government won't get a bigger take from reducing their share. In other words, it makes sense for higher taxes in France because reducing taxes 1% of GDP there might only increase GDP by 2% (instead of 3% here).<BR/><BR/>"<I>What happens if some critical mass of the electorate becomes aware of this...?</I>"<BR/><BR/>Probably nothing. The government is probably more powerful than the people.<BR/><BR/>"<I>...it might be worth letting the private sector outstrip the growth of government until the take is a few percentage points lower.</I>"<BR/><BR/>Maybe. What was surprising about the Romers' study was that they didn't see any effect on growth - the effect was only on the absolute size of GDP and it reached the new size in about 3 years.<BR/><BR/>If, instead, it was actually 1% per year forever, that'd make quite a difference. Perhaps it's some mix of the two.Brethttps://www.blogger.com/profile/15063508651955739056noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-90376102981873398452007-12-06T14:36:00.000-08:002007-12-06T14:36:00.000-08:00Looking at this post, it might be worth letting th...Looking at <A HREF="http://greatguys.blogspot.com/2007/09/workable-balance.html" REL="nofollow">this post</A>, it might be worth letting the private sector outstrip the growth of government until the take is a few percentage points lower.Howardhttps://www.blogger.com/profile/14980738175201874292noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-88693317500607255832007-12-06T14:24:00.000-08:002007-12-06T14:24:00.000-08:00One-third GDP maximizes our governments' take so t...<I>One-third GDP maximizes our governments' take so that's what they take. No more, no less.</I><BR/><BR/>So our "stationary bandits" are smarter and more efficient than most other places. What happens if some critical mass of the electorate becomes aware of this...?Howardhttps://www.blogger.com/profile/14980738175201874292noreply@blogger.com