This is a very interesting discussion and about a topic that has been on my mind as of late. I agree that this concept and argument is very complex and not something that can be adequately explained in one paragraph, let alone one image. Since our best interest is to be honest about this topic and explain it correctly, I agree with Ed that an animation may help firm things up for everyone. As things progress I may be interested in helping produce that animation so I will continue to follow this conversation and please let me know if you would like to talk more.
On Dec 8, 2010, at 5:23 PM, Edward Angel <angel@CS.UNM.EDU> wrote:
***This is a MISP Listserv message. Responses are sent to the list by default.*** ***For more info about MISP and the listserv, scroll to the bottom of the page*** * Jon,That is a very good explanation, although not one that could be captured easily in a picture. It could be captured in an animation that shows the money circulating repeatedly through the system (the multiplier effect).Both in this list serve and at the Council meeting, some have made the argument that every dollar coming into the state that wouldn't have come otherwise is good. That is a losing argument. Your example shows that the state wins when (a) its tax rate is reasonable (2) the rebate is set at the right level and (3) we can justify the multiplier. That's not an easy argument to make even though it is the correct one, both arithmetically and economically.EdOn Dec 8, 2010, at 5:02 PM, Jon Hendry wrote:***This is a MISP Listserv message. Responses are sent to the list by default.*** ***For more info about MISP and the listserv, scroll to the bottom of the page*** *