nat4900
Diamond Member
- Mar 3, 2015
- 42,021
- 5,965
It all began in 1974, applied during the dreadful Reagan years (Reaganomics…aka trickle-down theory) and is NOW being touted by our beloved Trump to further screw up our teetering economy.
The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer's main premise that the more an activity such as production is taxed, the less of it is generated.
Cutting taxes on America’s rich isn’t going to encourage them to invest more—those rich already have plenty to spend and aren’t spending it. Worse, by shifting wealth from middle class families to the moneyed few—a group that is able to consume far less than the working masses—this sort of policy suppresses consumption, which in turn discourages investment in productive businesses. Slowing demand drags on growth, causing debt and unemployment to rise.
Almost everything Republicans get wrong about the economy started with a cocktail napkin
Among many other failures, Reagan (and other GOPers) adoption of Laffer’s theory has basically given us a system that allows for the privatization of profits for big businesses, and the socialization of losses….leaving the middle class to subsidize the gambling by the rich on Wall Street.
The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer's main premise that the more an activity such as production is taxed, the less of it is generated.
Cutting taxes on America’s rich isn’t going to encourage them to invest more—those rich already have plenty to spend and aren’t spending it. Worse, by shifting wealth from middle class families to the moneyed few—a group that is able to consume far less than the working masses—this sort of policy suppresses consumption, which in turn discourages investment in productive businesses. Slowing demand drags on growth, causing debt and unemployment to rise.
Almost everything Republicans get wrong about the economy started with a cocktail napkin
Among many other failures, Reagan (and other GOPers) adoption of Laffer’s theory has basically given us a system that allows for the privatization of profits for big businesses, and the socialization of losses….leaving the middle class to subsidize the gambling by the rich on Wall Street.
