POLL: Do you believe that supply-side economics is legitimate economic theory?

[Cutten]

Quote from volente_00:

Please be so kind to point out the rest

I'm not here to do free research for people on demand, but Russia is one recent example which showed a very strong correlation between significantly cutting taxes (they shifted from a progressive tax up to 30% of income, to a flat tax of 13%) and seeing a rapid rise in personal income tax revenues.

Here's one link which covers the basics:

http://www.voxeu.org/index.php?q=node/941

Simple facts, not ideologically-driven bullshit.

 

[Covertibility]

Interesting read:

Professor Cites Bible in Faulting Tax Policies

Professor Hamill asserted that 18 states seriously violate biblical principles in the way they tax and spend. She calls Alabama, Florida, Louisiana, Nevada, South Dakota, Texas “the sinful six” because they require the poor to pay a much larger share of their income than the rich while doing little to help the poor improve their lot.

--------

I am shocked that the red states (using the 2004 red state/blue state map to classify what is a red state) are the major violators! Shocked I tell ya!

America is a faux christian nation.

 

[bkveen3]

Well that was fun. It was the only thread on ET worth participating in for about the last year. For the most part is was informed thought out debate.

Thanks

 

[jueco2005]

Productioin will increase only if a tax cut is followed by the same cut in govt spending. If govt does not decrease spending but runs a deficit we are just having a good time today to pay for it at interest tomorrow. Ridiculous.

I don't believe in an optimal tax rate.............each society must choose how big they want their govt to be. The measures taken to get the optimal tax rate are just accounting measures, they ignore other things unable to be put in numbers.

Quote from Cutten:

Ok - what is your reason for thinking production won't increase when the incentive to produce is higher?

And what is your reason for thinking that there isn't an optimal tax rate, or at least a range of optimal tax rates?

 

[jueco2005]

I could not agree more with you. 100%

+5.

Quote from IShopAtPublix:

You are arguing with ghosts. US has been dealing with financial alchemy for some time. I don't like keynes and I dont like supply side. If you take Austrian economics, strip it of silly references to libertarianism and gold standard you will have something that approaches my philosophy.

US cannot and will not be able to sustain it is military hegemony and Medicare/medicaid social security. Those entitlements need to be phased out which won't happen with present breed of politicians. The can will get kicked down the road.

 

[Thunderdog]

Quote from Trend Following:

Drivel. The "already entitled"? As defined by who? You?

I'm still wating for your response to my question regarding your defense of the Cato "Institute."

http://www.elitetrader.com/vb/showthread.php?s=&postid=2294160#post2294160

Also, shouldn't you be busy writing books or making "documentaries" on topics you know nothing about?

 

[Thunderdog]

http://en.wikipedia.org/wiki/Supply_side

http://en.wikipedia.org/wiki/Trickle-down_economics

http://www.hartford-hwp.com/archives/45/279.html

 

[NoBailOutBoy]

Will somebody wake me up? I have been thinking all along that with millions of home foreclosures, abandoned housing tracts, and the printing of Trillions of $$ so that we can borrow from our own debt, that we had the SUPPLY pretty well sewn-up.
I think that once my neighbor gets one of those Government jobs (preferably retro-active) that everything will be alright!

 

[Thunderdog]

With all of the earlier references to Laffer in this thread, I thought it might be useful to present this little item:

Quote from Thunderdog:

So much sophistry. So little else.

On August 28, 2006, Arthur Laffer appeared on Kudlow & Company to debate Peter Schiff, president of Euro Pacific Capital. Laffer made a bet with Schiff that there wouldn't be a recession, and that the housing bubble wouldn't bust in the next year or two. Both agreed to put their credibility on the line and the winner would receive a penny.

http://www.youtube.com/watch?v=LfascZSTU4o


Laffer appeared almost two years after that interview, on "Real Time with Bill Maher", on October 24, 2008. Maher asked him, "Have you paid off that bet?" Laffer replied that he had not.

http://www.youtube.com/watch?v=z3WjgKUf-kA&annotation_id=annotation_701524&feature=iv

http://www.elitetrader.com/vb/showthread.php?s=&postid=2373222#post2373222

 

[Mav88]

A generation of costly R&D investment was avoided by shipping factories overseas. This was done at the behest of Multinationals who lobbied congress to surrender their protectionist ideals and remove tariffs on foreign goods. Once done, the fate of America's Middle Class was sealed.

yes, and this entire discussion is way oversimplified. You can't take one nation in a world economy and apply some economic theory. There is not any gold standard economic theory anyway, despite Thunderdog's insistence that something like that exists. There are only principles and concepts that hold very roughly and only at certain times in history. The problem is exactly analogous to trading systems, you can only curve fit to the past.

Investment in R&D, sounds great... hua.... but the problem is that while we can innovate all we want, a chinaman will copy it and make the product for half the price. That didn't happen 60 years ago. I watched Eastman Kodak patent important item after item, such as the VCR and digital photography, they didn't make a dime off it. So much for education and investment.

One of the lessons of the neo-liberal experiments is that culture matters a lot. You can make all the 'right' policies yet if the people are douchebags, or one of a million other external factors goes wrong, it's all for zip.

I have not a clue why the brilliant minds of Washington thinks this is just like 1933 and that soon we will have the 50's again. It all seems so desperate, maybe because it is.