We shouldn’t fetishize small business and we should also enforce antitrust more effectively. These don’t have to be conflicting views
I’m sort of a class traitor, as a small business person, but I really do think the idea that everyone should own a little business is bad - for one thing, I suspect asset ownership and status as an employer is connected to more conservative views
And for whatever reason, they do seem less likely to be unionized, and harder (at least politically) to regulate (see all the exemptions in the ACA for small businesses).
All of that is perfectly consistent with making sure antitrust is enforced better than it has been over the last 30-40 years. I think an ideal situation is one where firms are able to get to a size where they can take advantage of economies of scale but not prevent new firm entry
We should have a higher rate of small business formation (a good welfare state will probably help!), but also we shouldn’t coddle small businesses with regulatory exemptions and lower wages, and should push them to fail faster if they aren’t efficient

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with James Medlock

James Medlock Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @jdcmedlock

18 Nov
Just getting around to reading this from @mattyglesias and it’s very much in line with what I’ve been thinking about lately given dim prospects at the federal level. We need to do big things in blue states! slowboring.com/p/make-blue-am…
Housing shortages lead to tax fatigue. Building more housing will not only expand the tax base, but I think it’ll make blue state tax increases more palatable
Treating public infrastructure as more of a jobs program than a way of efficiently providing public goods undermines faith in government and makes less room for other spending (esp at state level)
Read 5 tweets
15 Nov
A student debt forgiveness executive order is a good idea, because the senate is basically guaranteed to not do enough fiscal stimulus. The marginal dollar of relief money would be better spent elsewhere, but an executive order wouldn’t come at the expense other priorities
I dont think student debt forgiveness is progressive on the whole (though the poorer people it does help will be helped a lot), but it’s probably a much more effective form of trickle down than tax cuts. We should be pumping money into the economy however we can
I do worry a bit about the potential for political backlash, giving rising educational polarization. Debt forgiveness is one area where I have no problem with means testing if it’s administratively feasible - could avoid viral stories about giving forgiveness to super rich people
Read 4 tweets
10 Nov
Seems clear at this point that prop 15 will not find enough support in the remaining uncounted votes to pass. My guess is that without covid it would have narrowly passed, but people got nervous about the impact on small businesses during the crisis. What are y’all’s takeaways?
Prop 13 is such a third rail in California politics, it’s incredible we even got this close to overturning half of it. Ads targeting homeowners saying this would be a slippery slope to taking away their protections probably had a big impact too
Property taxes are the least popular form of tax, in part because they violate people incorrect but intuitive sense of fairness (having to pay on something you “own,” and detached from your current flows of income). Should keep pushing, but also be pragmatic on using other taxes
Read 4 tweets
28 Oct
I was watching this video from @GazeWithin () and I have to be pedantic about something - the claim that Medicare admin costs look artificially low because it piggybacks on other government agencies to collect revenue and determine eligibility is incorrect
In their Trustees reports, they mention they fully reimburse other agencies like SSA, HHS, and the IRS for their respective administrative roles, listed in table III.B1 (and other tables for the other parts of Medicare)
cms.gov/Research-Stati…
The other claim - that admin costs look low because per capita spending for old people is much high since they tend to be sicker - has some truth to it, but it doesn't account for the big gap. Per capita spending is about 2x for old people, and admin spending is 12.8% vs 1.8%
Read 5 tweets
9 Oct
Interesting paper on Norway's wealth tax, suggesting that it hasn't had a negative impact on jobs, and in fact suggests "a positive causal relationship between the level of a household's wealth tax and subsequent employment growth in the firm it controls."
iza.org/publications/d…
The mechanism here seems to be that investing in firm employment can be a way of reducing wealth tax liability
Norway's wealth tax is worth studying, because it's been one of the more successful implementations in Europe.
Read 4 tweets
16 Sep
When I talk about unions people often ask “aren’t you afraid workers will get too powerful?” and in the current context of the US it feels sort of like saying “aren’t you afraid you’ll trip and fall if you run away from this bear that’s trying to eat your face?”
It is possible to have poorly designed institutions that lead to perverse incentives, but the problem isn’t worker power itself
The nordics manage to have near universal public sector unionization without major issues because the government acts as an institutionalized voice for the public, rather than just rolling over to demands (as we’ve done in the US with police unions)
Read 4 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!