Businessman Quote by Daron Acemoğlu
““A businessman who expects his output to be stolen, expropriated, or entirely taxed away will have little incentive to work, let alone any incentive to undertake investments and innovations.””
About This Quote
Source Book: Economics of the Public Sector, 2010
When people expect heavy taxation or expropriation, they lose motivation to produce or invest, hindering economic growth.
In simple terms: High taxes reduce work and investment drive.
Consider fair, predictable policies.
Themes
Mood
Type
When to use this quote
- government regulation
- entrepreneurship
- public finance
Key Concepts
Questions to Reflect On
- What balance of tax and incentive encourages growth?
- How can governments protect investors?
Assumes all actors respond uniformly to incentives.