By John Tamny , RealClearMarkets
In his 1984 book, The Supply-Side Revolution, Paul Craig Roberts wrote of England’s gasping late ’70s economy. Despite the country’s dire economic outlook, London’s streets were full of Rolls-Royces.
Many would consider the above to have been a sign of economic prosperity, but thanks to the country’s at-the-time 98 percent tax on investment income, the plentiful existence of those luxury autos was a sign of economic decline. With taxes high on investment success, those with capital had no reason to offer it up to the next generation of entrepreneurs.