6) Since 2007, corporate profits have gone up yet business investment has gone down, challenging the whole premise of the corp cutspic.twitter.com/m0m8fdWFgG
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6) Since 2007, corporate profits have gone up yet business investment has gone down, challenging the whole premise of the corp cutspic.twitter.com/m0m8fdWFgG
7) For decades, median compensation has fallen far behind productivity growth, breaking another crucial link in the tax cut/wage gain storypic.twitter.com/mAFtlszhFY
8) Thanks, Josh! One of my personal favorite economists...always clear, rigorous, evidence-based.
Anecdotally, as a small business owner myself, it's hard to see tax cuts having a huge impact bc I'm already eager to hire when profitable.
The biggest drain on our hiring capacity is uncertainty about future profitability, not uncertainty about tax policy.
If you're extra profitable, what's a better move: A) payout as employee bonuses / increase wages or B) invest in technology / real estate?
If wages are already at market then A is unlikely, no?
Right. Hire more people.
Which might have an effect on long term demand for work (and thus wages), except the connection is now weaker.
So we're talking about already fabulously profitable companies taking extra $ from tax cuts and plowing them into employees, raising wages
Not impossible (although evidence is weak) but I was mostly pointing out that those forces are non-existent in small businesses.
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