What Paul Krugman Got Wrong About Alexandria Ocasio-Cortez's 70% Tax Rate
Sometimes complicated issues of economic policy can turn on correctly understanding basic concepts in economics. Consider Paul Krugman’s recent defense of House representative Alexandria Ocasio-Cortez’s proposal for a 70 percent marginal tax rate on the wealthy. According to Krugman, Ocasio-Cortez’s policy is actually quite sound—but his arguments in defense of Ocasio-Cortez betray several misunderstandings of fundamental economic concepts like marginal value, consumer surplus, and deadweight loss. Читать дальше...