I have written about the erosion of incentives to earn income, especially during this recession, by a variety of public and private sector programs (foremost among the private sector programs are debt collection programs that forgive debts for people with low incomes, but enforce them for those with high incomes). Here's another example that involves fewer dollars, but illustrates the point:
http://www.google.com/hostednews/ap/article/ALeqM5hTp5DVv4Qisj9CFdbTFX-j1rBE6Q?docId=4d140ccf08a0495f9f55429d89b5afe6
http://www.google.com/hostednews/ap/article/ALeqM5hTp5DVv4Qisj9CFdbTFX-j1rBE6Q?docId=4d140ccf08a0495f9f55429d89b5afe6
Dear Casey:
ReplyDeleteI've seen you on TV, and you are very knowledgeable. A few months back I saw you on Kudlow's show with Reich, and you correctly stated that a huge problem is government's perverse incentives that penalize wealth creation. I have a suggestion when you speak about this. Most people don't understand that wealth is created vis a vis production - not consumption. If you tried to explain this to the audience using a simple example or two, I think viewers would better understand your defense of the private markets.
I'm wondering how you explain this:
ReplyDeletehttp://www.angrybearblog.com/2010/11/proposed-bet-for-professors-bryan.html#more