The Federalist Hour, on this episode, discussed the potential of a recession, and how libertarians and co should address taxes.
The guest states, John Tamny of Real Clear Markets, argues that in order to create a better economy, more tax breaks should be given to the wealthy. He argues Trumps tax bill didn’t do this.
His argument is that taxes should be reduced for those with the most money. Billionaires will invest their funds into the economy, and that investment drives economic growth.
My question is where is the proof of all of these rich people investing in industries that require more labor. I see high investment in funds, and technology-oriented business that aim to reduce the need for human labor.
How is investment in AI good for the populace?
It’s not. How is it growing the economy for anyone but a select few? Old laws of economics fit an era where human labor was necessary.
Automation is not good for the economy as a whole, when it ends with fewer people being employed. Hence big tech’s advocacy for universal basic income (an idea that came from Milton Friedman).
Tamny further states that if there were a recession on the horizon, the practices of big companies would be a bellwether. Normally, I would agree. However, every major company affected by the 2008 crisis was bailed out. If I am a major corporation, why would I take the economic hit when I can always pass it down to the taxpayer, knowing that congress has a precedent for doing so?