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Why Common Sense does Not Seem that Common.
Common sense is only “common” to people who share the same underlying assumptions.
You have heard both sides of this argument. One side says that if you cut taxes, it gives industry more money to spend. More cash leads businesses to hire workers and create more products. The economy expands, and everyone does better in the end. It’s just common sense.
The other side argues that cutting taxes means the rich get richer and the poor get poorer. That side sees taxes as a way of making those who benefit most from society pay for those benefits and put more money in the average worker’s hands. Those workers then go out and spend money to buy the things they need. Increased spending drives demand for products, which leads industry to thrive: adding jobs and boosting profit. It’s common sense.
They can’t both be right. So which is it, more taxes or fewer taxes that makes the economy thrive. Economists have studied this question for decades and have reached a consensus. Are you ready? The best minds have concluded that it’s complicated, and there is no clear one or the other answer.
If there is no clear answer, how can people on both sides of the issues see it as simple common sense?
