The Laffer Curve, Part III: Dynamic Scoring (old version)

That hit the spot. I believe the GOP will recover in about 20 years. Once when the Bushes, Chaneys, Rumsfield, Rice, Wolfowitz, MCcain, Gingrich, Powell, among others are totally out.

Braves beat the Mets 9-3. Now that's what I like to see.. also the video was great. lol

What circular reasoning?

???

Keynesian economics lost in the 1970s when they said stagflation was impossible and it happened.

The problem with the Laffer curve is that it is based on the assumption there is some perfect level of taxation that maximizes income after tax withholding and revenues. However the government will not practice the restraint necessary to balance a budget, as evidenced by both Reagan and Bush's administrations. This leads Keynesians to say its the cuts themselves since they won't stop spending.

Balancing a budget, at least in the short run is a bad idea.
In the long run, it's necessary.

If by balancing a budget you mean stripping services to the point they are no logner functional or raising taxation so high that productivity grinds to a halt, yes you are correct. However the mentality that has gripped the United States that a deficit is just a matter of fact way of running the government is detrimental and is one of the foundational causes of the current economic crisis. Deficits were originally intended only for emergencies such as wars, not for building a welfare state.

Agreed.
Thanks for the correction, wreddon.

Well said.

danke