Arnold Kling on Prodigious Accumulators of Wealth
Via Jesse Taylor, comes the latest from Arnold Kling. Jesse gave Arnold’s ranting a nice reply, but one little empirical matter here. Arnold seems to think the rich have a high marginal propensity to save. But Glenn Hubbard, Bush’s first CEA chair, often wrote that the rich have a high marginal propensity to consume. What gives fellows? Or is this like that old SNL commercial – it’s a desert topping AND a floor wax (tax cut to promote consumption AND boost national savings)?