But low- and middle-income workers who are living paycheck to paycheck are likely to spend most of any payroll tax cut. Some of the tax break might go to pay down credit card debt or substitute for borrowing, which also won’t boost the economy, but with credit much less available than it was a few years ago, I expect this effect to be relatively modest. And extending unemployment benefits is an almost ideal economic stimulus because long-term unemployed people have little choice but to spend any additional income.
“You work in sales for a mobile phone company. I work as a teacher.”
“Yes, my taxes pay for your salary.”
“But my mobile phone bill pays for your salary. If the government nationalised Vodafone – stranger things have happened – and privatised the school system, my taxes would be paying for your salary while my employer would be sending you a bill for my teaching of your children. But we’d still be paying each other. This is a modern economy. Everybody pays for everybody else’s salary, except the subsistence farmers and survivalists, who look after themselves.”
*My note: Really like this conversational format. Short and sweet.
A new course at Northwestern University presents an ingenious cost-cutting move for cities staring at mountains of debt: bring in a team of undergrads to do your work for free. Starting in January, students enrolled in Poli Sci 395 are set to work directly with officials in Chicago’s Inspector General’s office to improve transparency and accountability within the government of the country’s third largest city.