Tuesday, September 16, 2014

How are Economic Reporters like Climate Deniers

While NPRs Planet money consistently produces the best in economics journalism Time's Curious Capitalist column, consistently produces the worst. In her latest column that advocates higher corporate taxes Fooroohar is like the climate deniers who ignore the scientific consensus about climate change because the science is inconvenient. Planet Money rightly pointed out (in Six Policies Economists Love (And Politicians Hate)) that the consensus opinion by economics science by economists of all political leanings is that corporate tax rates are too high in the US and arguably should be abolished. The US has one of the highest corporate tax rates in the world and progressive Europe taxes it's corporations less because economists know that taxing corporations destroys jobs and dissuades growth. Consumption taxes or even income taxes are better tools for addressing inequality. Bad economic reporting like this is what helps perpetuate bad polices. 

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