Re: Krugman on the Deflation quagmire; reply to Warren's post

["James R. Olson, jr." <jhavok@xxxxxxxx>]

Can you explain this a little more?  I can't quite work out what you mean.

What do you mean by "capital concentration," and how would you measure it?
How does taxing it resolve to a fixed cost of production?

At 07:25 PM 5/30/03 -0700, John O'Donnell wrote:
>Transfer those taxes as are now imposed [i.e. -- transaction taxes of
>one sort or another] that resolve to variable costs of production and
>replace them with a progressive tax on capital concentration [i.e. -- a
>"monopoly tax"] that resolves to a fixed cost of production and
>magically the marginal cost of production is reduced and companies
>reduce prices to cause greater consumption. Disparity in income
>distribution would also be reduced but that is only an incidental effect.
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