The Laffer curve is not funny for those whose refuse to acknowledge its truth.
It’s not like history is absent of lessons to be learned from bad fiscal policy and oppressive taxation.
The people in charge are either stupid or just don’t care about the consequences.
Contributing states like Texas (net contributor) will get fed up with having to bail out the failed social engineering policies of other states. As long as things are okay nothing will happen.
But when the collapse affects the daily lives of people there will be a reckoning.
It is as predictable as the law of gravity.
The only question is when, how, the cost, and what will be left in the aftermath.
I’m admittedly not smart enough to answer those questions but I am smart enough to know its coming and I need to be prepared to survive or be at the mercy of FEMA, DHS, etc.
It's all politics. Reality, and its consequences, just doesn't figure into their lust of power. After all, they will get theirs. To heck with common sense.
To wit, in Congress, the CBO can't use dynamics, such as the Laffer Curve, to give a more realistic estimate of the impact of tax policy.
The old story of a TX US Rep (economics prof, Dem turned Pubbie, iirc, name escapes), asked the CBO what the revenue of 100% tax rate would be.
The answer was the expected income of all US taxpayers without any effects of the punitive, and disincentivizing tax rate.
>>The Laffer curve is not funny for those whose refuse to acknowledge its truth.
>>The people in charge are either stupid or just dont care about the consequences.
I don’t see this as an either/or situation. They are both stupid and evil. They embrace the consequences because they believe the high taxation on the rich” will even out “wealth inequality”, and they see this as a desirable outcome appropriate to be addressed via government taxation policy. Who cares if it destroys the economy for everyone?
And further regarding Laffer, these people are largely innumerate. Expecting them to properly interpret a very complex chart (not really) and the resultant effects on public policy is asking a whole lot.