But its the New Economics Foundation, why would they listen to someone who lived nearly 250 years ago, especially when he tells them something they don’t want to hear?
The whole point of the “new” bit is so that don’t have to take any notice of past experience and can live in a state of isolated ignorance.
SimonF
Thinking about it a bit more, the problem is that many on the left think Adam Smith invented economics rather than being and observer and explaining what worked and why.
JamesV
Aren’t they slightly correct (albeit for reasons that would abhor them) in that domestic production is not subject to the odious taxation that market production is? Even trade here is untaxed – you look after my sprogs while I’m at work and I’ll make yours tea when I get home, and so on. That particular transaction being one that HMRC did infamously attempt to tax once.
So moving production out of the market into the home might actually be more efficient, to the producer, if tax rates are high enough.
Tim adds: The tax wedge certainly makes a difference. But note that it makes it more efficient to the consumer, not the producer.
But its the New Economics Foundation, why would they listen to someone who lived nearly 250 years ago, especially when he tells them something they don’t want to hear?
The whole point of the “new” bit is so that don’t have to take any notice of past experience and can live in a state of isolated ignorance.
Thinking about it a bit more, the problem is that many on the left think Adam Smith invented economics rather than being and observer and explaining what worked and why.
Aren’t they slightly correct (albeit for reasons that would abhor them) in that domestic production is not subject to the odious taxation that market production is? Even trade here is untaxed – you look after my sprogs while I’m at work and I’ll make yours tea when I get home, and so on. That particular transaction being one that HMRC did infamously attempt to tax once.
So moving production out of the market into the home might actually be more efficient, to the producer, if tax rates are high enough.
Tim adds: The tax wedge certainly makes a difference. But note that it makes it more efficient to the consumer, not the producer.