It does a lot, by increasing wealth that had been wiped out on paper, it not only allows for the investment capital to create jobs, but has a multiplier effect on consumption. It is very stimulative.
Most of the economy runs on disposable income. It is not the poor who need to consume more in order to get the economy going, but the affluent, who have a lot of disposable income, but who are subject to fears about losing their jobs and retirement. I fear you want to cut off your nose to spite your face. For example, estate taxes mostly affect farmers and small estates, the rich are not particularly hurt by them. It is the middle class that gets disproportionately bitten. They are the one's most helped in wealth accumulation by getting rid of estate taxes. Similarly, the rich have so much in their portfolios, it is rather theoretical whether they are up or down in a given year. I mean, if you have lost the value of a third of your portfolio, but have fifty million dollars left, it does not much cramp your lifestyle. It is the middle class that sweats its investments, especially for educational funds and retirement. They are the one's who tighten their belts when the market is down, and who loosen them when it is chugging upwards......... |
