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There is a common misconception of the Laffer curve that is based on trying to interpret the data. However, what the Laffer curve demonstrates is that there is
by ChefDenominator 9y ago
There is a common misconception of the Laffer curve that is based on trying to interpret the data. However, what the Laffer curve demonstrates is that there is a curve, nothing else.
Please note that I do not consider anything from Wikipedia as evidence of anything, so if you are trying to get me to respond to something to do within a Wikipedia article, it just isn't going to happen. The number of times I have discovered serious issues with those articles, especially on political, philosophical, and academic topics is, frankly, disturbing.
There is a theory within some economic schools of thought that savings generates production, but this is not directly to do with tax rates or the Laffer curve, nor even rich people.
- Roboprog 9y agoThus, the "+". The article is fair in that regard - it's just an abstract curve, with no exact formula, let alone coefficients. In practice, though, when somebody brings up Laffer, they are going to claim constants that generate a curve that peaks with a low tax rate. In one sense, you are likely right: there is probably no formal academic theory of "supply side economics. But we have been subject to hearing this interrelated line of argument over and over since Reagan.