The business world warns in a column that the new S-MP government's very moderate tax increases will lead to a downturn for the economy as it will scare away capitalists from daring to invest. He brings up the economic downturn in the Swedish economy during the 70s and early 80s as an example of how things will go.
Then I reply that we have had no growth since 2007 because the tax level was too low.
Tax is not money that disappears but money that is redistributed so that it can be used for consumption again.
When the tax level is too low, public investment is reduced too much and the many low-income earners' purchases too much. Even Wall Street admits this. The combined purchasing power of the many low-income earners is a greater force than the few rich. Among other things, because it will satisfy the needs of more mouths. A rich person simply does not need as many cars as a million low- and middle-income earners.
The 70s crisis was not a high tax crisis but was due to the world abandoning the gold standard.