5 Jun 2016
Strange modelling used to sell company tax cuts
We're told that cutting the company tax rate will lead to greater economic output, higher wages and more jobs. But the modelling used to support these claims is based on assumptions that are divorced from reality.
There's an old joke about an economist, a physicist and a chemist stranded on a desert island with no implements and a crate of canned food that washed up from a shipwreck.
While the physicist and the chemist set about devising novel ways to open the cans, the economist says: "Let's assume we have a can opener."
Its obvious that the LNP modelers not only assume they have a can opener but they have a full set of tools as well. Problem:- If they're only assumed tools they still can't open the can?
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