It only applies when rich people profit. Losses are to be socialized.
Yglesias and DeLong argue that this is a good opportunity to argue for highly progressive taxation of the rich to balance the fact that they aren't actually exposed to real risk. I would argue that electing progressive politicians (in the US) is a condition precedent to making those kind of progressive policy arguments. So don't expect those arguments to make their way into the mainstream public sphere any time soon.
Monday, March 17, 2008
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