Quote of the Day
If one person has a right to something he did not earn, of necessity it requires that another person not have a right to something that he did earn.
Walter E. Williams
May 1, 2015
American Contempt for Liberty
And you know what that leads to, right? Among other things a much lower productivity and standard of living for everyone without an “in” with the political leadership.
I was recently in the Socialist Republic of Vietnam (see below) and will share pictures in a later blog post.
Vietnam abandoned socialism throughout much of their economy decades ago when it became obvious how superior many aspects of a market economy were. The only “socialist” part of the society is the government ownership of a handful of large corporations and the oligarchy in charge of the government. At this point in time the government is less intrusive in the life of the average Vietnamese than the average Californian
Unless my sample of the country was very biased, something is still very wrong with their economics.
“The problem with socialism is that you eventually run out of other people’s money.”
Margaret Thatcher
No constructive economic activity?
Free Rainbow Stew bubble up for all.
Feel the warmth of collectivism, comrades.
Stone Soup with Dirt Gravy, but there isn’t anyone to contribute vegetables or meat or herbs.
Wait, you had water to make soup and gravy? Comrades, he’s a rich elite!
You have a pot to make soup in? Wrecker!!! You must have stolen it from the Collective’s kitchen.
Meanwhile this is the sort of thinking that the lefty academics use to “debunk” the Laffer Curve.
Well, yes, technically, but only if you assume evil is good, and a relatively sane, productive, and homogenous population, and- and- and-….
Absolutely everyone, when they actually understand the claims of the Laffer Curve, admits that it is accurate.
1) at 0% tax rate, you get no revenue
2) at some very high tax rate (if 100% isn’t enough for you, feel free to use 1000% – there IS such a point), you get no revenue
3) there are rates somewhere in between where you do get revenue
That’s it. Those are all the facts needed to believe the Laffer Curve is accurate.
Now, the Laffer Curve itself makes no claim, so far as I have seen, as to what SHAPE that curve is. The simple assumption is a simple up-down curve, but it could be a multi-peak monstrosity of complexity. It almost certainly varies at least some over time, and honestly, I can think of no way to definitely get the actual curve at any given moment.
But that the curve exists, and that there are therefore conditions where raising the rate results in lower revenue or lowering rates results in higher revenue, is simply beyond dispute. Anyone who claims otherwise is a charlatan or insane.
For bonus points, every major tax rate cut in my adult lifetime has resulted directly in higher revenue. Literally, actually, directly, immediately (as in, the very next tax year).