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No, really, he’s terribly, terribly, damn stupid

His taxing wealth thing, about how we’re going to control inflation by taxing the rich. You know, reducing the stimulus of excess money creation by taking it back off rich folk. So, today he tells us about what fiscal policy is:

Reducing taxes on those with the lowest pay tends to have a higher fiscal multiplier effect with, as a result, more and more immediate fiscal policy impact than reducing taxes for those with the highest levels of income and gains does. That is because those with lower incomes tend to spend the benefit of any tax cuts that they receive almost immediately, whilst those with higher incomes and gains tend not to spend the benefit of tax cuts that they enjoy but save them instead, producing, as a result, smaller fiscal multiplier effects. In both cases, the reverse is also true.

Taxing poorer people more has a greater anti-stimulatory effect than taxing richer people more. As he says.

He can’t even keep his effects straight between policies.

8 thoughts on “No, really, he’s terribly, terribly, damn stupid”

  1. Bloke in North Dorset

    Is he admitting that people spending their own money is better than the government spending it on their behalf?

    The socialist collective will be burning him at the stake for such counter revolutionary thinking.

    That’s if the public health fascists don’t get there first. The horrors, those people don’t know what’s good for them and they might spend the money on things they enjoy, which obviously be bad for them.

  2. I can only presume the Hunt in No 11 is hanging on his every word. Since he seems to have been secretly managing the UK economy for the past two decades. And eventually he’ll receive his just rewards. A dukedom at the very least.

  3. BiS

    I think that is what Murphy has been counting on for the last few years to bail him out pension wise but the SNP’s travails seem to make it quite unlikely….

  4. @ V_P
    Yet the evidence would seem to indicate that the esteemed Prof Murphy is the mastermind behind UK economic policy. He suggests things & lo & behold we discover them doing exactly what he suggests. Are you going to deny that the Treasury are MMT’ers to a man? Surely this won’t go unrewarded.

  5. I am reminded of another Classic show – a Sci Fi one from the 1990s – ‘Babylon 5’

    – ‘Ah, arrogance and stupidity in the same package, how efficient of you’

    A perfect summary of Murphy.

  6. BiS

    You know I have said ‘It’s Murphy’s world and we just live in it’ – the question is whether in his lifetime he will get the recognition he merits? If only he were less objectionable his financial problems could be over!!

  7. Question is, V_P. Is it his world personally. Or are we living in the World of the Murphys, plural? There seems good reason to believe the latter. In which case maybe Darwin didn’t get it entirely correct.

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