After Scott Sumner surveyed, with aghast, the uselessness of the leather-bound backgammon sets and other luxury goods on the FT’s HowtoSpendit website, he couldn’t help but post an argument for progressive consumption taxes. Sadly, his argument overlooks the most valuable aspect of “luxury” goods—their motivational effect. Talented people can earn a living with less work and entrepreneurial risk-taking—two things that grow the economy and increase employment. ... Read More
