Robert McTeer in Forbes, “The Flawed Assumption Behind Ending The Bush Tax Cut For The Rich”: “We hear over and over that ‘the rich’ have a lower marginal propensity to consume and, thus, smaller multipliers than the multipliers of real people, or no multiplier at all. This is supposed to justify raising taxes on the rich. Leaving aside whether $200,000 makes one rich and leaving aside the problems with applying the Keynesian multiplier concept economy-wide rather that to the individual, such a conclusion is, as they say, fatally flawed. It is flawed mainly because it confuses saving with hoarding and assumes that income not spent in the first round on consumption is not spent at all, even in subsequent rounds.” http://bit.ly/a8xJMf
