When economies become stagnate companies and governments want to raise prices. Profit problems and cost pressures entice the companies and governments to raise their price. However, in every case this makes the profit problem worst because raising prices attack new competition. In governments the competition is special interest group seeking more government help and in companies it is other companies seeking a share of the prize. The rising price cause a decline in efficiency and morale. On the other hand lower prices bring a larger share of the market because they cause innovation that allows increases in economy of scale. The unexpected breathroughs in technology allow sudden bursts of profit growth and cost reduction. These are dynamic gains. Taxes cuts reduce the price for business giving profits to growth new markets and create new jobs. Tax cuts move business from the social business to the private business to administer and grow new jobs. The best investment to politics is a transformation of the U.S tax structure. Laffer suggested a flat tax rate of 11.5 percent.[Learn More ...]

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