Reply to thread

Message: <blockquote data-quote="Box Ox" data-source="post: 3895493" data-attributes="member: 48469">I think these are the two mistaken arguments of Krugman's:1) Diminishing marginal returns ("Come on, you won't miss all that extra money anyway!")and2) Pointing to the much higher post-WWII top marginal tax rates and tying them to the higher rate of GDP growth per capita. The US economically dominated the post-WWII world in which Europe and Asia were rebuilding, and big third world economies had not yet merged as major players.US GDP growth per capita was bound to decrease in an increasingly globalized and competitive world economy, regardless of what the top marginal income tax rates were.</blockquote>