the flaws in Comparative Advantage. I also advocate higher tax rates for corporations. Low tax rates induce a race to create high after tax profits, which increase stock prices. To create higher profits, corporations put pressure on workers to accept lower wages and benefits, work laborers harder, and move production facilities to countries with low wage workers. The net effect is to lower wages domestically, reducing aggregate demand, and raising unemployment and reducing the number of higher paying jobs. It also reduces union power which contributes to lower wages and benefits. If corporate taxe rates were higher, then additional profits would be paid to the government. Instead, corporations would pay those profits to workers or invest in additional machiner or r & d to avoid paying additional taxes. By paying workers more, they will spend more, increaseing aggregate demand, and causing a multiplier effect with demand for more products causing more jobs. That's the way it worked from the 1940's to the 1970's.