supply side

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The Moral Failings of Supply Side Economics

The other day I had a debate with a math student. He defended the mathematical soundness of the Laffer Curve and, by extension, the efficiency of supply side economics. Maybe the Laffer Curve has theoretical soundness, but it’s never been shown to work at levels of taxation like ours. Furthermore, there’s a real human cost when attempts have been made to try to make it work here. That’s even provided that the people keeping so much money in lower taxation actually keep it in the same curve. If we’ve learned anything from Mitt Romney and his Cayman residing millions, it’s the one glaring human reason as to why the Laffer Curve will never work anywhere. As for “efficiency”; let’s just say that my friend had a limited understanding of what that word means in the field of economics. These points were all lost in the morass of my friend’s Math Chat. Continue reading