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Monday, February 10, 2014

Casey Mulligan and the "Glue Trap". You should read this interview.


Anonymous said...

Isn't there still an incentive to work if the implicit marginal tax rate will only be around 20%? Wouldn't the implict marginal tax rate have to come to about 90% to 100% to disincentivize against extra hours worked vis-à-vis a net gain in income?

Anonymous said...

^ ^ ^

Seriously, Dr. Parker. What's the problem?

Randall Parker said...

If the objective is to forever create an underclass that is dependent on the government for its survival and the dynamics are such that extricating one's self from such a fettered and festering sewer is economically irrational then there is no problem whatsoever. Friedman had this figured out way back in the early 1960s in Capitalism and Freedom.