--- [EMAIL PROTECTED] wrote: > I don't see how too much capital could cause a recession,
Too much financial capital, i.e. money, can cause a recession, by artifically lowering the interest rate, inducing excessive investment of those capital goods for which only a low rate of interest is profitable. Since intended consumption has not changed, consumers compete with investors for goods, driving up prices. The capital goods turn out to be unprofitable investments, and the diminution of investment leads to a downturn. Fred Foldvary > or indeed how it's possible to have too much capital. There can be too much real capital invested in particular types of capital goods. > I've never heard a good reason advanced for taxing > someone's income twice, Is there a good reason for taxing income once? > income tax law under the 16th Amendment (which incidentally wasn't the first constitutional federal income tax, contrary to popular view)< Since prior federal income taxes were not proportional to states' population, how were they constitutional? Fred Foldvary ===== [EMAIL PROTECTED]
