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The Taxation of Luxuries and the Rate of Interest

A. F. McGoun

Montreal, Canada

Quarterly Journal of Economics 1919

I. Luxury defined as consumption which does not increase capacity for labor, 298. — Superfluities include consumption necessary for business connection, 300. — Short and long periods, 301. — Capacity for labor varies with consumption of necessaries, 301. — Classification of commodities, 302. — II. Demand for necessaries inelastic because (a) their consumption benefits both present and future, 304. — (b) Capacity for labor is limited, 306. — A tax on luxuries would divert labor to production of capital, also lessening demand, 307. — Labor would become more productive and real wages would rise, 308. — Wealth would be increased, 309; and transferred to people whose effective desire of accumulation is strong, 310. — III. Possible decrease in quantity of labor expended, 314. — Self-development not labor, 315. — Leisure, defined as time not devoted to labor, is either necessary or superfluous, 316. — Annual product varies inversely with superfluous leisure enjoyed, and might be either decreased or increased, 318. — Rise of wages might check fall of interest; convergence of altruism and foresight, 319.

DOI
10.2307/1884736
Volume
33 (2)
Pages
298
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