Lee Says Tax Reform Is Not Trickle Down, It's Trickle Up

The video discusses the impact of a tax reform bill on investment incentives, highlighting a shift from debt to equity financing. It explores how capital structure influences investment decisions and the role of equity in driving productivity. Despite technological advancements, productivity remains low due to poor investment quality. The discussion also covers the distribution of economic gains, emphasizing the need for real productivity improvements to benefit the workforce. The concept of trickle-up economics is introduced, advocating for investments that enhance productivity and economic growth.

What is one of the major shifts in investment incentives mentioned in the tax reform bill?

• Decreased incentive to invest in tangible assets

• Increased incentive to take on equity

• Decreased incentive to invest in technology

• Increased incentive to take on debt

Why do equity holders prefer companies to make bold investments?

• To boost productivity

• To increase short-term profits

• To reduce operational costs

• To ensure safe returns

What is necessary for technology to significantly impact productivity?

• Managerial resistance

• Incremental investments

• Debt financing

• Equity holders pushing managers

What is the focus of the World Economic Forum regarding economic gains?

• Reducing technological investments

• Trickle-up economics

• Trickle-down economics

• Maintaining the status quo

What is a key factor in achieving higher income gains for the workforce?

• Investing in old-style incremental investments

• Real productivity improvements

• Reducing labor force

• Increasing debt financing