Lectures in Macroeconomics- Charles W. Upton The Trade-Off

Efficiency Losses

The Trade-Off Efficiency Losses When we tax wage income or consumption there is an efficiency loss

The Trade-Off Efficiency Losses So too when we tax capital income

The Trade-Off So What are we to Do? So what are we to do?

The Trade-Off Eliminate the Government? So what are we to do? We could eliminate all government spending

The Trade-Off Eliminate the Government? So what are we to do? We could eliminate all government spending Recognize that efficiency losses are a cost of government spending

The Trade-Off Efficiency Losses from Wage and Sales Taxes Efficiency Losses $ $ collected by Taxes

The Trade-Off Efficiency Losses from Taxes on Capital Income Efficiency Losses $ $ collected by Taxes

The Trade-Off Rotate the Graph Efficiency Losses $ $ collected by Taxes

The Trade-Off Merge the Graph Efficiency Losses $

The Trade-Off Merge the Graph Efficiency Losses $ Sum of Efficiency Losses

The Trade-Off Merge the Graph Efficiency Losses $ Sum of Efficiency Losses

The Trade-Off And The Number is This graph is not to scale, and the general point is obvious: a balance is called for. But can we put a number?

The Trade-Off A Formula from the Past

The Trade-Off Updated

The Trade-Off Putting Some Numbers

The Trade-Off End ©2004 Charles W. Upton. All rights reserved