Holy mackeral Art Laffer

Discussion in 'Economics' started by Covertibility, Aug 18, 2011.

  1. I couldn't believe he said that lowering taxes results in lower tax revenue. Graced as the Father of Supply Side this morning, he admitted reality on CNBC.

    As a result, I would advise anyone dying today and expecting to visit Hell to bring winter clothes.
  2. It depends on the conditions. It won't work now because private debt is so high if people have more money they will pay the debt down. It is a double liquidity trap. The monetary policy is constrained by high debt and the effect an interest rate rise would have on the economy. The fiscal policy is constrained by the need to use all money to make repayments.

    Aggregate demand control is not viable under these conditions using existing methods.