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fencing in phelps

phelps has the comment critters restless and bereft of moorings

master paine steps in


"by a clever transfer from wage earners to wage payers

you can increase job time 

jobs 

and the productivity 

of the population

its very 18th century 

the poor man's 

poll tax forces him to sell more hours 

like a mortgage nut

on his house does

i'm not joshing 

if you want a system that extracts more total job hours 

then maybe 

the optimal

 job /non job 

time shares  

at the margin 

may need to get progressively more rewarding

 to counteract 

the growing 

opportunity cost 

of forgone 

 benefits 

of  non job time

ie

( substitution effects)

obviously progressive marginal tax rates on job income

go the opposite way 

from incentivizing 

more job hours

but a per capita 

head tax 

with a tough enough

 "pay it or go to jail"

would surely 

get em out 

into the job market 

trying to sell  their hours 

in larger numbers and with bigger time  offers too

 

t'is all quite rational 

notice phelp's  isn't cruel

he has a job creation payment 

as an incentive 

for the firms 

by making the jobs that much more profitable to the firms

the demand might rise to meet the supply 



phelps sez

"lets see where we can take this puppy"

i'm starting to grow fond of my old prof...

 sure

he's no vickrey 

but this really is a mad science portal

to loony policy 

i love it  

upside down

 inside out 

---------------

but the geefs keep baying and miss playing

so ...

i ride in again

------------

ladies and gentlemen you are missing the point

pass a per capita lump sum tax 

ie marginal tax rate= zero

make it cut in when you're say ....18 or 22 

make it unavoidable

 and must be paid 

or else 

uncle seizes stuff of yours 



that'll force 

more folks to get a job and stay on the job longer

now comes the crazy kat part

 u thru your gubmint

take the revenue 

from the per capita lump sum tax 

and 

shoot it back

into the payroll stream 

one way not the ned way 

is thru 

 the  earned income tax credit 

schedule 

goose her up 

raise the yield

to the jobster

for doing

 lower productivity

 wage rate tasks

like bathing the aged 

and phepls has another point

household 

wealth 

like pure i'm a citizen type social entitlement income is the enemy of job time max

yup wealth as it rises tends to curb the appetite for job time selling

an income effect 

to go with our substitution effect 

so 

now tax all net worth over one million dollars 

at the real rate 

of interest

and 

keep this up

till the ice cap melts 

voila !!!!



-----------

ps

this wealth effect on job time like its effect on household savings rates

has lots of room for exploration 

by enemies of the rich and fatuous

Posted by js paine at October 18, 2006 12:34 PM

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