Tuesday, February 05, 2008

"Doctor Strange-Curve..."

... or "How Democrats should stop worrying and learn to love the Laffer Curve".

Democrats love to dis the so-called Laffer Curve, named after Arther Laffer, but conceptually with humanity for centuries before Laffer. Democrats reflexively set up a straw man that Republicans foolishly think all tax cuts pay for themselves. This is of course not at all what the Laffer curve claims, as indicated in the following short video. (h/t Larry Kudlow at NRO).

What the Laffer curve does is indicate the level of taxation at which government revenues are maximized. Republicans and libertarians don't want to maximize government revenue, but to minimize it while maximizing economic freedom.

One would think that Democrats would after all want to maximize government revenue. But they don't. They want to go beyond maximization to inhibit freedom and promote their social and economic "justice" values. This is otherwise known as "socialism".

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