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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (761849)	1/6/2014 6:48:30 PM
From: TimF	Respond to of 1576627

If I willingly buy an apple for $1 or someone sticks a gun to my head and makes me buy the apple for $1, the economic effect of the transaction in the economy is identical. 1 - Probably not, at least no when indirect effects are considered. Economic effects include the incentives that are created, and the incentives are rather different in the two scenarios (as they are between bank deposits and taxes). 2 - The analogy is a poor one. Buying an apple is buying an apple (once you get past the question of whether your really buying an apple in the gun to your head situation, rather than being mugged and then given an apple). But paying taxes isn't making a deposit. Even completely ignoring the voluntary vs involuntary difference (and there is no good reason to do so) its two different types of "transactions".