Amygdalas Economicus: Perspectives on Taxation

Paul Krugman is right that we are in the “dark ages” of economics. The wisdom of the ancients has been lost, but while mainstream economics operates under a presumed “law of supply and demand”, Krugman has acknowledged only that the wealthiest Americans do not live in a supply and demand world. Actually, Barry Lynn’s book, “Cornered: The New Monopoly Capitalism and the Economics of Destruction” (2010), demonstrates persuasively that no one does. How market economies work has been based on a fundamentally false perspective almost from the beginning. Today, monopoly profits rise rapidly to the top at everyone’s expense.

Inequality has risen rapidly because taxation of corporate profits and top incomes was severely reduced since our economy last prospered. This essay, originally posted over a year ago, explores the wildly divergent perspectives on taxation that result from the faulty mainstream, neoclassical perspective.

(Return to the Contents Topics page.)

economist mod econ theory

(Illustration by John Berkerly for The Economist, July 16, 2009)

To understand how the rich and powerful managed to replace the “invisible hand” of the open market with the invisible fist of their autocratic institutions, we have to look beyond their co-optation of the word “market.” We must also look at the word they appended to it: “free.”  It was the act of combining these two words into the term “free market” that transformed the market from a political tool that exists within  human society into something that exists over and around human society, something that acts upon human society like a sort of mechanical god. – Barry C. Lynn

Apologies for the title, but I chose it to remind me of the emotional, and often fearful, component of intellectual thought.

Barry C. Lynn’s fabulous book (Cornered: The New Monopoly Capitalism and the Economics of…

View original post 4,956 more words

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s