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Corporate tax cuts, employmnent and aggregate demand

I was busy trying to write something all day on the issue. But the good citizens over at the Progressive Economics Forum pumped out one serious post after another. So all I can say is go read the posts. Oh and shop the comments for Stephen Gordon’s rebuttal.

Can we please now get back to employment. You know like the thing that actually moves investment.

Taken together, these two pieces of evidence seem to suggest that in Canada a more likely channel for bringing about higher investment is via lowering the unemployment rate.

And Since Gordon has already confessed corporate income tax rates have nothing really to with jobs then we might just well ask what does?

It aggregate demand stupid.

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