R&D is one of the first things companies tend to cut when money gets tight. It's one of the areas that least affects short-term profits and scare investors. Technology start-ups are similar to R&D in that their product could be revolutionary and change the lives of large numbers of people, but it won't happen fast or cheap.
I wonder what things would be like if the Fed also had the power to set broad taxes, like just brackets and rates. Would it be functionally little different, since the people with higher incomes also disproportionally invest in start-ups and R&D, so taxing them more will make them invest less and we're at the same place we are now?
R&D is one of the first things companies tend to cut when money gets tight. It's one of the areas that least affects short-term profits and scare investors. Technology start-ups are similar to R&D in that their product could be revolutionary and change the lives of large numbers of people, but it won't happen fast or cheap.
I wonder what things would be like if the Fed also had the power to set broad taxes, like just brackets and rates. Would it be functionally little different, since the people with higher incomes also disproportionally invest in start-ups and R&D, so taxing them more will make them invest less and we're at the same place we are now?