QuoteIn addition, with so much of the profits transferred from companies to the government, there is little incentive for business to expand.
That goes back to Reaganomics, cut taxes, create more jobs and everyone benefits. The problem is it has long been shown to be nonsense. Unless taxes are excessive, and they're no where near that, then tax cuts will only help the wealthy and corporations, precisely as has happened over the past 3 decades. When the money is transferred to the government, what happens to it? Does it just disappear in a puff of smoke? Or does it get spent helping people, building infrastructure, buying stuff from businesses etc.? No, it doesn't just disappear, it gets moved into a different part of the economy, to where it's needed. Throughout most of history, the money has always moved up, benefiting only the few, with the bulk of the population barely surviving. By redistributing the wealth, the standard of living for the entire population improved. It's not hard to make the argument that the government has the responsibility to help everyone, not just the privileged few. They do that through taxes, with the wealthier paying a greater share. That is the only way forward, with declining employment. Unchecked capitalism is the cause of many problems. While I am certainly in favour of capitalism, it must be moderated, so all benefit.