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Links and quotations for October 9, 2015: Driverless car accidents, the soul of Seattle, and Chick-fil-a disrupts NYC
Big news this week with the opening of Chick-fil-a, a “totem of red-state habits, in New York City.” However, the company is doing its business in a way that disrupts expectations – for instance, paying first-time employees more than $2 over the mandated minimum wage, and a $1 more than NYC favorite Shake-Shack does. That and much more here.
The WaPo’s Catherine Rampell writes that Bobby Jindal’s tax plan “has made Donald Trump look like a grown-up.” Why’s that? Well, both tax plans would lose about a trillion dollars a year, even accounting for faster economic growth. In other words, they would cut federal tax revenue by a third as a share of GDP.
Norway’s sovereign wealth fund frees up the current government to begin putting in place the kind of tax and fiscal policies necessary to transition away from its dependence on oil and gas. As Finance Minister Siv Jensen put it, “the most important thing we can do is to stimulate growth in private, competitive industry.”
Links and quotations for October 8, 2015: Kickstarter to the rescue, how recessions can be healthy, and why creativity needs competition
A new study shows that economic downturns can coincide with new healthy behaviors. That, how Kickstarter is supporting Syrian refugees, and why all creative enterprises – whether in music, painting, technology, or business – need fierce rivalry to survive and improve. “The more creative you are, the greater your chances for rivalry. And the fiercer your rivalry – the higher your chances of remarkable progress.”
Links and quotations for October 7, 2015: A LinkedIn economy of the future, the ‘myth of dynastic wealth’, and more
A great profile in The New Yorker of Reid Hoffman explains more than the history of LinkedIn, but how Silicon Valley imagines the future of work. That plus much more… including a new paper out of Cato that takes on Thomas Piketty, exposing the ‘myth of dynastic wealth’ and the necessity of entrepreneurship.
Yesterday I highlighted some Goldman Sachs research suggesting US productivity growth is faster than what’s being measured by official statistics. That report also includes brief interviews with two academics — both from Northwestern University — on different sides of the productivity debate. On the techno-pessimism side, Robert Gordon. On the techno-optimism side, Joel Mokyr. Here is a bit of what both had to say on the mismeasurement issue.
Again, the Donald Trump ginormous tax cut plan. The guy at the Tax Foundation who ran the model on the plan — the one that found it lost $11 trillion over a decade, $10 trillion on dynamic basis — takes issue with Trump claiming his plan will be “revenue neutral.” In particular, he focuses on Trump’s plan to (a) cut the top marginal tax rate to 25% from 39.6%, (b) put a 0% rate on the first $50,000 of income, (c) cut the corporate income tax to 15% from 35%, and (d) lower rates on pass-through businesses to 15% from 39.6%. TF’s Alan Cole (bold is mine): […]