Dear kevkrom,
You may be right about Dr. Jorgenson's intentions. It's tough to get inside folks' heads.
However, I'm inclined to think he chose this model for a different reason. I haven't had time to work it all out in my head, but my initial intuition tells me that doing it Dr. Jorgenson's way might be better vis-a-vis imports and exports.
I gotta think about it more.
"Personally, I think it would be better than that, because there's additional overhead and wasted effort and money that goes into tax compliance and avoidance that could be freed up for productive use and/or cost savings."
Well, I've owned my own businesses for 20 years, and my own personal experience is that this would save me little, if anything. I'm sure it would save some people more, but my own experience with other business owners is that they wouldn't save much, either.
And Dr. Jorgenson clearly views the price level reductions being fueled primarily by saved payroll and income taxes that are not passed back to the worker.
sitetest
You may be right about Dr. Jorgenson's intentions. It's tough to get inside folks' heads.Poor Dr. Jorgenson. I have a feeling he's going to have a very busy day! His email must be getting slammed.