Will China's Sale of Treasuries Force the Fed to Buy? - Barrons.com
What he means is that by paying more in taxes, the capital to create jobs will be transferred to the government from the private sector.
And, we all know how smart and hard public employees work (I was one).
So instead of a profit motive, we have people either on the dole, getting free (or very heavily subsidized) healthcare or not working and early and richly retired and benefited.
Somehow this doesn't seem like real GDP. It's more like phantom GDP.
So there will be less money to invest in real jobs and less money overall; and, what is taken at higher and higher rates will leave less and less to be invested in the capital that creates jobs.
This is the European sclerosis - i.e. higher taxes so less capital to create growth and higher prices (in Portugal car prices are doubled through taxes) to discourage purchases, which could drive job creation.
It's a drive to the bottom. Socialists can only support their systems of economic administration by being in denial. Denial in terms of assuming others will work and give the money to non-workers and the government with no impact on saving, investment or productivity. Yet, when you ask a socialist to forgo all discounts at a supermarket, one doubts they'd agree it was fair.
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