From the blog post: Also, there is a followup where they respond to comments.
From the blog post:
When competition does not prevent firms from resorting to scarcity and pricing power, a tax can. The key is not to tax profits per se, but profit margins. Then firms are free to be as profitable as they want to be, if they increase the quantity they produce and sell at customary margins. But if they try to shirk producing and just raise prices, the gravy gets taken away.
Also, there is a followup where they respond to comments.
From the blog post:
Also, there is a followup where they respond to comments.