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Sunday, April 24, 2016

Mario Draghi and Germany’s Fiscal Fetish by Hans-Helmut Kotz - Project Syndicate

Mario Draghi and Germany’s Fiscal Fetish by Hans-Helmut Kotz - Project Syndicate



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  1. Comment bruce birkett APR 24, 2016

    Let's just recognize that with high VAT rates (23% in Portugal) not only do goods get less attractive to purchase (i.e. less consumption) but also, any new business has a higher hurtle rate (economic-utility function) to reach to get buyers.

    Maybe not directly a Laffer Curve relationship, but clearly close. 

    We are looking at starting a business and, before any other costs of goods sold, we are looking at handing over 23% to the government. 



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        Comment bruce birkett APR 24, 2016

        Let's just recognize that with high VAT rates (23% in Portugal) not only do goods get less attractive to purchase (i.e. less consumption) but also, any new business has a higher hurtle rate (economic-utility function) to reach to get buyers.

        Maybe not directly a Laffer Curve relationship, but clearly close. 

        We are looking at starting a business and, before any other costs of goods sold, we are looking at handing over 23% to the government.
      Posted by Bruce Birkett at 9:08 AM

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