'windfall tax' in International Economics: IB Economics

Scooped by Graham Watson

December 13, 2022 3:34 AM

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From www.theguardian.com - December 12, 2022 10:02 AM

Graham Watson's insight:

Like some in the UK, Robert Reich is opposed to further interest rate hikes, suggesting that in going down this policy route, government have chosen a particular route, and the distributional consequences associated with it.

He sees the costs of higher interest rates as falling squarely on consumers and workers, whereas other policy measures - notably a windfall tax and tougher competition policy - could have the same effect but burden profitable companies, notably those who've unduly benefited from the energy crisis or who are able to exploit the advantages of large size, rather than some of America's most vulnerable.

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