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Comment by Cless | Hacker News Reader

> Japan's consumption tax, which is set to rise to 8% on April 1

So they're actually going through with this, when the economy has been depressed for over a decade...?

Only in America is a tax increase equated (without any further investigation) to depressing the economy, and a tax break (once again without investigation) equated with letting the peacock that is the economy fly free.

Indeed. But I hope you're not implying I am doing that. ):

Love, a liberal Canadian bent on destroying freedom, liberty, capitalism, and all things good.

> Only in America is a tax increase equated (without any further investigation) to depressing the economy

That's not strictly true. There are other countries who harbor economists possessed of half a brain and theory describing the basic principles of how quasi-rational actors behave in various situations. They just usually don't get listened to. :)

Promising free lunches for everyone is much more popular and gets you elected! :D

Theory is dumb when all empirical data disagrees with it. Good thing the Austrian's figured this problem out by ignoring data. It's the true hacker's way.

You have to afford the Austrians some sympathy. They know, just know, that their economic theories are correct and just. However, they kept running into a problem: there's so much troublesome data that proves the opposite of their beliefs. One day, Ludwig von Mises discovered that the scientific method itself was flawed. So he created a new system to replace it by fiat: "praxeology." Problem solved - now science confirms everything Austrians believe. No need for data.

I'm sure you have multiple studies with mountains of data which clearly demonstrate that the economy is at its most prosperous at a marginal tax rate of 100%. Oh, man, you guys are so cute. :)

So the only possible marginal rates are 0% and 100%. Good to know.

Clearly.

You're dumb. Please read an actual book on economics not associated with Mises or his filth.

Japan economy has not been depressed. Stagnant maybe, but over the last decade unemployment rate was only 5%.

That's right. The main problem is deflation. Monetary policy has been effective in the last year, but increasing sales taxes could wipe all of that progress out.

So I'm depressed, not Japan. :)

Why do you think their economy has been depressed for over a decade? Every time they show a glimmer of growth, they yank out the rug from underneath by raising taxes.

Why do you think their economy has been depressed for over a decade?

While it is incredibly complex, the fact that their population has been static, trending towards declining, has played a significant part of it.

In many countries, economic growth is just a side effect of population growth -- every number gets bigger, but the actual wealth of each individual person is static or in decline.

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