A Blank Spot on the Map

Monday, July 16, 2012

Who wants to make a bet?


When our economy is doing decidedly better (pick a  measure....GDP, median income, median wealth or  employment) which may not be the case for decades the tax rate defined as total federal revenues divided by the gross domestic product will be higher NOT lower.

Tax receipts as percent of GDP

That is the most easy to see prediction but other indicators will show the number of public servants will be higher then it is now and income inequality will have lessened and likely trade will have become more balanced. I know this because ... of history. This is not a guess this is just what history tells us. If at some point our economy is doing worse it will likely be a result of these trends going in the wrong direction as they might with true austerity measures.