Low tax rates make it easier to get to the point of diminishing marginal utility from extra work and incremental investment risk.
FORBES: How I Know Higher Taxes Would Be Good For The Economy
Like most everything else, holding money has diminishing marginal utility.
FORBES: QE2 Was A Really Big Ocean Liner
Remember the law of diminishing marginal utility in Econ 101?
FORBES: The Economy's Delta Blues
Just as diminishing marginal utility means more of something adds less and less to total utility (bank reserves), it also means that less of something (bologna) will raise its utility at the margin.
FORBES: Tom T. Hall's Week in Jail, the Jailer's Wife's Bologna, and Monetary Policy
And unless they repeal the laws of diminishing returns, marginal utility and supply and demand, the paper money will lose out.
FORBES: Gold Endures While Paper Money Goes Up In Flames
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