PK> If you read The Recovery Myth, you would UNDERSTAND why we haven't
PK> been through it yet.

That book does not have the salvation of us all in an economic sense Paul.

It just makes a series of claims, most of which are demonstrably false
like the ones I commented on to you, the grosser is this stuff.

  PK> He makes the case that increasing levels of taxation always lead to a
  PK> dampening of productive economic activity and a rise in speculation.

  RS> Thats a completely silly proposition for starters. In the times of
  RS> small government, and much lower overall taxation we actually saw
  RS> the worst excesses of speculation. At times it went completely mad.
  RS> So much for that silly line.

Its just a complete load of rubbish.

PK> And what's this fascination with surely the worlds worst economic
PK> model - socialism/communism?

It happens to be exactly the same thing, a claim made that the solution
to the worlds economic ills has been found, in this case the claim was
made by Marx and Engels. The claim even sounded quite convincing too,
convincing enough that entire countrys decided to try their prescription.
When it was tried, it was found to be a dud, they got it wrong.

Precisely the same thing would happen if the claims made in the Recovery
Myth were used for a countrys economy, it would become clear that it wasnt
working too. Because he gets most of the basics wrong.

PK> You seem to keep going off on this tangent.

It aint a tangent. The history of economics is riddled with people who
claim to have found the holy grail of economic salvation for us all. Not
one of them has actually done that. That book doesnt contain it either.

PK> I am interested in a simple fiscal adjustment to our revenue system,
PK> namely slashing taxes.

Yes, without a shred of evidence that its actually going to work to
eliminate economic cycles that you dont like to see. In fact you can
look back in history to the times when they had much lower taxation
levels and see that they had much more dramatic and brutal economic
cycles. Look at last century for example when all the first world
countrys had much lower taxation levels than they have today. They
also had much more brutal economic cycles that we see today, say in
the recent recession. And many more of them in a particular century too.

QED, it aint the salvation of us all in an economic sense.

PK> If this is some foolish conspiracy theory,

I dont think its a foolish conspiracy theory, I think you have just
got it wrong, you cant demonstrate that slashing taxes will eliminate
economic cycles. Its the usual extremely superficial simplistic solution.
It wont work.

--- PQWK202