Laffer: How To Fix The Economy

[PoliticalChic]

1. The only way President Barack Obama can solve the nation’s economic woes is to adopt “common-sense” Reaganomics, the policy’s architect Arthur Laffer claims in an exclusive Newsmax interview. Laffer said the White House called him in the spring and asked him to speak to Obama’s former Council of Economic Advisors’ chairman Austen Goolsbee – and he had told him exactly the same thing. “Reaganomics would fix any economy that’s in the doldrums,” Laffer said. “It’s not a magic sauce, it’s common sense.

2 “You’ve got to get rid of all federal taxes in the extreme and replace them with a low-rate flat tax on business net sales, and on personal unadjusted gross income. That’s number one. “Number two, you have to have spending restraint. Government spending causes unemployment, it does not cure unemployment. “Number three, you need sound money. Ben Bernanke is running the least sound monetary policy I’ve ever heard of," Laffer said. “Number four you need regulations, but you don’t need those regulations to go beyond the purpose at hand and create collateral damage. The regulatory policies are really way off here.

3. “And lastly you need free trade," Laffer said. "Foreigners produce some things better than we do and we produce some things better than foreigners. It would be foolish in the extreme if we didn’t sell them those things we produce better than they do in exchange for those things they produce better than we do.”

4. Laffer said he has no doubt the country will win its top rating back, but only when economic policies are completely turned around. He said President Barack Obama’s administration’s only economic plan seemed to be to expand government ownership of the means of production. “They have nationalized the health care industry pretty extensively. They’ve done that with home building as well. They’ve tried it with the auto industry as well. So they have moved very, very deliberatively and purposefully toward extending the government ownership of the means of production.

5. “People don’t work to pay taxes, people work to get what they can after taxes. It’s that very private incentive that motivates them to work. If you pay people not to work and tax them if they do work, don’t be surprised if you find a lot of people not working.”

6. Laffer had high praise for the role the tea party has played in bringing the problem of the deficits to the fore. “The tea party is not the problem, the tea party may well be the solution,” he said. “They are critical to the future of the country in a positive way. They are the only fiscally sound people I know out there all the time. “I don’t know that I would go as far as they go on a lot of issues but I surely respect their movement very much.”
Laffer: Obama Must Use Reaganomics to Save Economy

 

[AVG-JOE]

I'll take a return to a tax code as it was under Reagan... it's a hell of a lot closer to fair than what we currently have. The T-party is self-hamstrung and can't go back to Reaganomics as it would raise taxes on the rich, but Reaganomics would be closer to fair than what we have now.

Google Search: US Tax Law

Simple = Fair

The answer is fair taxes and a budget balanced by law.

 

[Toro]

Arthur Laffer has probably done more damage to the intellectual bearings of American conservatives in this country than anyone else in the last 50 years.

 

[elvis]

I still wanna know at what point that curve turns.

 

[Ravi]

I think Laffer is why our economy is in such bad shape. Perhaps not purposely on his part, but certainly in the way the Republicans have applied his viewpoint.

 

[Cuyo]

Laffer's a joke, long debunked. You gotta be kidding me with this shit.

 

[Ravi]

Oh, wait....if PC's quotes are for real, Laffer is definitely at fault.

Take the one about taxing people that work makes them not work. That's just retarded. If you are still making a profit, more than likely you'll just work harder.

 

[Toro]

I still wanna know at what point that curve turns.

Not here.

How Far Are We From The Slippery Slope? The Laffer Curve Revisited

 

[Wiseacre]

Arthur Laffer has probably done more damage to the intellectual bearings of American conservatives in this country than anyone else in the last 50 years.

Really? Based on what?

 

[Toro]

Arthur Laffer has probably done more damage to the intellectual bearings of American conservatives in this country than anyone else in the last 50 years.

Really? Based on what?

By imbuing a deeply held belief in the American right that pretty much no matter what the rate of tax - any tax - it can be cut and pay for itself.

Most conservatives around the world don't believe this. But they do in America.

 

[Brutus]

Arthur Laffer has probably done more damage to the intellectual bearings of American conservatives in this country than anyone else in the last 50 years.

Really? Based on what?

By imbuing a deeply held belief in the American right that pretty much no matter what the rate of tax - any tax - it can be cut and pay for itself.

Most conservatives around the world don't believe this. But they do in America.

it goes without saying that if you take money money from those who know how to earn and invest it and give it to make-work liberal bureaucrats the economy will shrink and tax revenue will go down.

 

[Brutus]

Arthur Laffer has probably done more damage to the intellectual bearings of American conservatives in this country than anyone else in the last 50 years.

Really? Based on what?

By imbuing a deeply held belief in the American right that pretty much no matter what the rate of tax - any tax - it can be cut and pay for itself.

Most conservatives around the world don't believe this. But they do in America.

if you give money to a guy on welfare and to a venture capitalist which action is likely to increase tax revenue? Now you understand supply side economics.

 

[geauxtohell]

I still wanna know at what point that curve turns.

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

 

[elvis]

I still wanna know at what point that curve turns.

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

It's D-shaped: the Y-axis completes the D, IIRC.

 

[Brutus]

I still wanna know at what point that curve turns.

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

don't be silly. its obviously very imprecise but deadly accurate in terms of the relationship between tax revenue and the size of the economy

 

[geauxtohell]

Really? Based on what?

By imbuing a deeply held belief in the American right that pretty much no matter what the rate of tax - any tax - it can be cut and pay for itself.

Most conservatives around the world don't believe this. But they do in America.

it goes without saying that if you take money money from those who know how to earn and invest it and give it to make-work liberal bureaucrats the economy will shrink and tax revenue will go down.

Yes. It's all so logical isn't it? You know what else is logical? 100% of people with cancer drink water. Therefore, we can logically conclude that water causes cancer.

But, let's just follow your logic out and ask the obvious: how did that work the last time we tried it?

 

[geauxtohell]

I still wanna know at what point that curve turns.

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

It's D-shaped: the Y-axis completes the D, IIRC.

My God! To maximize revenue, we have to lower the tax rate to 0%!

It all makes so much sense!

 

[geauxtohell]

I still wanna know at what point that curve turns.

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

don't be silly. its obviously very imprecise but deadly accurate in terms of the relationship between tax revenue and the size of the economy

Whose being silly?

Here:

Here is a theoretical Laffer Curve (that assumes a perfect bell). Now show me where we are at on the curve and why.

Numbers please. Not opinions.

Oh, by the way. As you see: t* lays at the 50% line. The income tax for the highest income bracket in this country is currently 35%.

 

[Brutus]

But, let's just follow your logic out and ask the obvious: how did that work the last time we tried it?

of course as a liberal you will not be able to follow these arguments but lets try anyway.

1) it always works well, the larger the economy the larger the tax revenue.

2) the 2003 Supply side tax cuts produced the greatest increase in revenue in American History!

 

[Brutus]

As does every single frigging economist in the World.

Just what we need, the return of the completely theoretical Laffer Curve.

While we are at it, can anyone tell me with any degree of confidence if the Laffer Curve is a perfect Bell or skewed to the right or left.

I mean, if we are going to preach the miracles of it, we should at least be able to describe it's shape.

don't be silly. its obviously very imprecise but deadly accurate in terms of the relationship between tax revenue and the size of the economy

Whose being silly?

Here:

Here is a theoretical Laffer Curve (that assumes a perfect bell). Now show me where we are at on the curve and why.

Numbers please. Not opinions.

don't be a silly goose liberal, its obviously very imprecise, and with variables that no one can account for precisely