How does regulation and complex tax systems increase gdp?
Discussion
More tax professionals doing more services for businesses to generate revenue.
That doesn't imply gdp is higher. The money folks spend on tax pros could be spent elsewhere. Also, the pros doing that job could potentially be earning more in another job. So I don't think there is data either way, so it should be assumed it's a wash
tax is a drag on the economy, you can find hundreds of studies and econ articles that say so
A not inconsequential percentage of all employment is employment created by regulation. More regulation = more jobs = more GDP = more taxes and debt carrying capacity.
Especially when the markets freak out over the differences of 1% or less in changes to unemployment numbers.
It's all a house of cards with minimal ACTUAL PRODUCTION and an over abundance of government employment and jobs required to meet regulation and oversight.
This sounds like keynsian economics tho. Because can't you just as easily say Less regulation = more jobs?
IE as a farmer, if I'm responsible for quality of my meat VS being forced to use an inspected facility, then that facility doesn't have to pay the inspector or they could be apart of their own inspection regime (I'm imagining a co-op of on farm butcher/slaughter trailers that can somehow innovate to drastically drop the cost of slaughtering cleanly OR increase the meat quality at the same price). So same amount of jobs, but it's voluntary. And those who opt out of any "inspection" still have cheaper costs which could allow them to pass those onto their customers to be more competitive on price or hire another farm hand or whatever
Yes, I agree that less regulation = more productive jobs. I'm certainly not defending the position I'm stating, but that's the situation we currently operate in IMO. But I'd think more people working the productive jobs could create more competition, lowering prices, lowering GDP 🤷