RightNation.US
News (Home) | Righters' Blog | Hollywood Halfwits | Our Store | New User Intro | Link to us | Support Us

RightNation.US: Supply Side Shenanigans - RightNation.US

Jump to content

-----

Supply Side Shenanigans

If you're wondering why young adults, heck adults in general, are woefully misinformed, look no further than the textbooks from which they learn:

https://c5.staticflickr.com/6/5660/31003454436_7568ef701f_z.jpgMcGraw Hill 2 by Chris Naron, on Flickr
https://c8.staticflickr.com/6/5742/31039208335_c1e676db54_b.jpgMcGraw Hill 1 by Chris Naron, on Flickr

Notice the shenanigan? They talk about the 1981 tax cuts, then jump to the 2000s.

https://c3.staticflickr.com/6/5628/31003454146_d1df6a1086_z.jpgGDP by Chris Naron, on Flickr

Clearly, one could make the case that the tax cuts of the 1980s resulted in higher revenues. No one can prove it conclusively, but tax cuts produced higher revenues in the 1920s, 1960s, and 1980s. Perhaps the 2000s were an abberation. Perhaps there's simply no way to prove anything statistically with just four examples.

One can analyze, though. The claims of Arthur Laffer and other supply siders aren't that tax cuts always result in higer revenues no matter what. There are other variables to consider. I happen to think the size of the tax cut coupled with big decreases in interest rates produced some of the growth in the 1980s. The rest of it came from the productivity gains as more workers left agriculture.

https://c1.staticflickr.com/6/5761/31003499856_3e7b36419f_b.jpgPLF Ag by Chris Naron, on Flickr

Percentage of labor force in agriculture is one of the most ignored variables. I think much of the slower growth of the past decade and a half has a lot to do with the fact that we can't pull any more people off the farm. Similarly, when you can' lower the interest rates any further, what do you do?

Trump is proposing a pretty big tax cut, and I hope it works. Perhaps massive cuts in regulations will help because we can't count on interest rates going down. Either way, the Laffer Curve still works; you just have to understand that the whole curve must be remade when the variables change.

My Mind is Clean
0
  Like

2 Comments On This Entry

Academic economists don't seem to understand a fairly simple principle. When taxes are cut, more money is available to spend. Jobs are produced and people working make more (and paying increased taxes on it) and some people who'd either been on welfare or making incomes below taxable rates will be paying taxes. With taxes on the increased income businesses are making, the actual revenues can go up. Our problem is not that the government doesn't take in enough, it is that they spend far more than they have. I do feel that there are WAY too many government employees and major cuts there would help...
0

Bookdoc, on 16 November 2016 - 10:18 PM, said:

Academic economists don't seem to understand a fairly simple principle. When taxes are cut, more money is available to spend. Jobs are produced and people working make more (and paying increased taxes on it) and some people who'd either been on welfare or making incomes below taxable rates will be paying taxes. With taxes on the increased income businesses are making, the actual revenues can go up. Our problem is not that the government doesn't take in enough, it is that they spend far more than they have. I do feel that there are WAY too many government employees and major cuts there would help...


All that is true, but if a recession hits like it did in 1981 and 82 or in 2001, the decline in GDP is going to mean less revenue. It's asinine to blame that all on a tax cut when the tax cuts usually kick in once the recession has already started.
0
Page 1 of 1

4 user(s) viewing

4 Guests
0 member(s)
0 anonymous member(s)

Search My Blog

Recent Entries

New Blogroll! And...World's Shortest Movie Reviews

Blog Roll
Ace of Spades
National Review
Got News
RealClearPolitics
ZeroHedge
The Federalist
African American Conservatives
Instapundit


World's Shortest Movie Reviews
American Sniper: Bradly Cooper=Best Actor
The Arroyo: Had a Pureflix feel to the acting, but well shot. Great conservative movie.
The Hobbit: The Battle of the Five Armies: As usual, the third installment is the best--having an ending really helped.
The Maze Runner: The perfect metaphor for moving to Detroit.
Dumb and Dumber To: More jokes. Cruder jokes. Someone gets hooked on crack.
Snowpiercer: Joe Biden's idea of heaven. Everyone on the Earth living on a train. Captain America admits he was going to eat Billy Elliot.
Hunger Games: Catching Fire: This is what the world would look like without college football.
Interstellar 2001:A Space Odyssey with a soul. You will get very thirsty, so hydrate before viewing.
When the Game Stands Tall Proves my theory that it's worse when you win.
Guardians of the Galaxy Make a fun adventure movie about space and make a ton of money. Who knew? I mean, besides that Lucas guy.
Blended I don't get the "Billy Madison is genius, Blended is crap" review. It's as good as any other Sandler movie.
Mom's Night Out Hilarious. You will laugh unless you drive a black BMW and watch sunsets at the golf course.
The Amazing Spiderman 2 This series is still better than the Toby McGuire one. I actually cared if Gwen Stacy died.
Odd Thomas I understand the critics who didn't like the uneven tone. Way uneven. Still worth watching on Netflix.
Star Trek Into DarknessGood movie. Please, for the love of tribbles, let old Spock die.
Grown Ups 2 Critics, attack. Whatever you want to say about this one, I'm okay with it.
Thor: The Dark World Still very, very good. But I'd like an entire Thor movie set just in Asgard.