The Laffer Curve isn't a particularly novel observation (what do you mean a 100% tax rate would kill productivity???) and his paper on it didn't even have much in the way of mathematical rigor. His reputation is purely based on rightoids signal boosting a non-insight that provides ideological cover.
Everytime a rightoid says "muh laffer curve" when giving an unsubstantiated shit take on tax policy an undergrad econ major gives up and majors in finance instead 😔😔😔
Arthur Betz Laffer is an American economist and author who first gained prominence during the Reagan administration as a member of Reagan's Economic Policy Advisory Board.
The situations where the Laffer Curve is probably most relevant today are taxes on legal weed that are high enough that it's still cheaper to buy it on the street and cigarette taxes in locales vulnerable to smuggling from neighboring low-tax states.
"tax cuts pay for themselves" is likely one of the most disastrous lies in modern history.
Like yeah, obviously you don't want a 100% tax rate, but rightoids have used this bullshit to provide cover for some of the most ridiculous tax cuts ever.
I've had countless boomers tell me tax cuts are a net-gain for government revenue.
I’m pretty sure that even most neoliberal economists say that raising the minimum wage has far better long term benefits than harms, like the whole thing with Ford paying his employees more so that more of them would potentially buy his cars type thing (I know thats not exactly what happened and it was part of a larger trend but that doesn’t really effect my point.).
I know a dude in a rural area that makes 13 an hour. He has a nice two story house, two kids, a wife, and two cars. She cleans houses and makes like 15-16 an hour.
They live a good life.
That would be impossible in most parts of California.
Bad faith actors have been doom-saying about wage increases since the 1930s.
I read a pretty good analysis on this once where the guy went over all of the times people claimed wage increases would kill industry and were wrong.
Hint: every single time.
His conclusion was it isn't about "protecting industry" but scaring poor people into thinking better wages will lead to them being unemployed, so they don't ask for better wages.
It’s honestly somewhat dicey. There’s demonstrated effects that show that the previous increased had minimal effects on the economy and unemployment (though I’m sure some people claim to have proven millions unemployed because of it). This time around is different though, and any economist who claims with 100% certainty any effects is a hack. $7.25 to $12 with minimal side effects maybe, but $15 is ridiculously and would ripple effect pretty much instantly. And we frankly don’t know how that would turn out. No state has $15 min wage, and the few low skill labor jobs that do (Amazon) work their employees to death to justify it.
I think this guy is right. The McDonalds cashier is already an obsolete role because I order on a kiosk anyway.
21 comments
28 xX69Sixty-Nine69Xx 2021-06-09
The Laffer Curve isn't a particularly novel observation (what do you mean a 100% tax rate would kill productivity???) and his paper on it didn't even have much in the way of mathematical rigor. His reputation is purely based on rightoids signal boosting a non-insight that provides ideological cover.
Everytime a rightoid says "muh laffer curve" when giving an unsubstantiated shit take on tax policy an undergrad econ major gives up and majors in finance instead 😔😔😔
18 busslordlowkeybussin 2021-06-09
And this:
That's all they really need.
8 Pepperglue 2021-06-09
And that's all we need to know he's probably full of shit, but thinks very highly of himself.
4 pixys_alt 2021-06-09
The situations where the Laffer Curve is probably most relevant today are taxes on legal weed that are high enough that it's still cheaper to buy it on the street and cigarette taxes in locales vulnerable to smuggling from neighboring low-tax states.
3 Exotic_Ad7433 2021-06-09
"tax cuts pay for themselves" is likely one of the most disastrous lies in modern history.
Like yeah, obviously you don't want a 100% tax rate, but rightoids have used this bullshit to provide cover for some of the most ridiculous tax cuts ever.
I've had countless boomers tell me tax cuts are a net-gain for government revenue.
0 BMBB24 2021-06-09
Laffer curve doesn’t mean no taxes though.
If you really focused on the economics you would probably want a higher tax rate. Neolibs are actually very based economically imo.
20 grippingtale 2021-06-09
"WHATS THAT ABOUT MINORITIES????"
0 Zero5urvivers 2021-06-09
I’m pretty sure that even most neoliberal economists say that raising the minimum wage has far better long term benefits than harms, like the whole thing with Ford paying his employees more so that more of them would potentially buy his cars type thing (I know thats not exactly what happened and it was part of a larger trend but that doesn’t really effect my point.).
18 Not_a_robot_serious 2021-06-09
just make a bureau of the minimum wage that goes county by county to determine the wage for decent living and do it that way
19 Giulio-Cesare 2021-06-09
That's basically what I've been advocating for.
I know a dude in a rural area that makes 13 an hour. He has a nice two story house, two kids, a wife, and two cars. She cleans houses and makes like 15-16 an hour.
They live a good life.
That would be impossible in most parts of California.
15 goodbehaviorsam 2021-06-09
Fast food around me is currently offering $17 an hour. $21 if you have experience.
An apple cider place was offering $22 to pick apples.
3 Giulio-Cesare 2021-06-09
Yeah I've noticed low skill places are hiking up their wages like crazy lately.
There's a gas station near me that's so desperate for people they're offering over double what they were just a year ago as a starting wage.
And every single fast food place has a hiring sign in the window with a starting wage way above the usual minimum wage.
Turns out they could've afforded to pay workers higher wages all along.
0 Exotic_Ad7433 2021-06-09
Lol everyone has known this forever dude.
Bad faith actors have been doom-saying about wage increases since the 1930s.
I read a pretty good analysis on this once where the guy went over all of the times people claimed wage increases would kill industry and were wrong.
Hint: every single time.
His conclusion was it isn't about "protecting industry" but scaring poor people into thinking better wages will lead to them being unemployed, so they don't ask for better wages.
3 911roofer 2021-06-09
Then poor people should move out of California. Let the system collapse. We should all go live on the streets of San Francisco!
9 Zero5urvivers 2021-06-09
That would be the best thing to do but unfortunately the 10th amendment makes that harder than it should be.
4 Sc00t_Sc00t 2021-06-09
Sounds like a bureaucratic nightmare that "small government" types would REEEE about
But when are they not REEEEing 🤷♂️
3 Not_a_robot_serious 2021-06-09
BUREAUCRY?? YOU HADLY KNOW ME
1 I_Shah 2021-06-09
Or just let state and local governments decide what the minimum wage is
6 quitsocmedia 2021-06-09
It’s honestly somewhat dicey. There’s demonstrated effects that show that the previous increased had minimal effects on the economy and unemployment (though I’m sure some people claim to have proven millions unemployed because of it). This time around is different though, and any economist who claims with 100% certainty any effects is a hack. $7.25 to $12 with minimal side effects maybe, but $15 is ridiculously and would ripple effect pretty much instantly. And we frankly don’t know how that would turn out. No state has $15 min wage, and the few low skill labor jobs that do (Amazon) work their employees to death to justify it.
I think this guy is right. The McDonalds cashier is already an obsolete role because I order on a kiosk anyway.
5 [deleted] 2021-06-09
[deleted]
3 BussyKing777 2021-06-09
Anyone who unironically thinks this is a good idea has an IQ below 10.