Arthur Laffer #1??? What a load of BS
Laffer is enemy #1 for leftists. His theories are antithetical to everything that central planners, Socialists and Keynesians believe. That’s why they will never miss a chance to criticize him.
I saw Art Laffer listed and stopped reading further.
Why a U.S. Default Will be a Good Thing
http://moneymorning.com/2011/08/11/why-us-default-will-be-a-good-thing/ ;
Have you noticed that the media doesn’t even dare to utter the word default?
Or when the word is mentioned, it is preceded by the word “disastrous” or “cataclysmic.”
The reason why default is never mentioned as a possibility by the Socialist media, is because default will destroy U.S. gubmint credit, making it impossible for gubmint to borrow. Maybe it would force balanced budgets for a generation?
Socialists prefer inflation, which is disguised taxation, or even austerity. But a Keynesian’s worst nightmare is a government unable to borrow money.
The Laffer Curve is usually misunderstood. The professor is not responsible for this.
Conservatives and liberals both often seem to think the LC says that reductions in tax rates will always result in increases in revenues. This is inaccurate.
There is a peak in the curve where the maximum revenue is produced. It a system is to the right of that peak, increases in tax rates will cause a drop in total revenue.
But if one is to the left of the peak, increases in tax rates will cause an increase in total revenue.
Both liberals and conservatives, when discussing the LC, always seem to assume we are on the right side of the peak. But that doesn’t necessarily follow.
Before attempting to use (or discredit) the LC, one should demonstrate why we are presently left or right of the peak.