This piece is by the conservative organization, Prager University (not to be confused with the forthcoming Kruse Kollege.) It does a nice job describing the Laffer Curve, an important concept to know if you want to have an informed debate about tax policy. Clearly the presenter is trying to persuade you about the location of a hump in the Laffer Curve. Even if you dispute his pinpointing of the hump, the presence of a hump is real.
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[This is a 2014 version of the original 2012 video.]
Agreed. Many don’t even know its existence, but I agree with you that the important question is where the hump is.
Mike,
While there must be some Laffer hump, I am not sure I would link to Prager University and its simplistic explanation to present it. I did a little looking around the web and this is a highly complex issue that cannot be drawn by a simple line. Here, for instance, is an older article by Alan Blinder about the Laffer Curve: http://research.stlouisfed.org/publications/review/81/conf/1981section1-3.pdf. I don’t get all of the math, but my take away is that there are many factors that go into determining where the hump might be (Blinder posits that it is higher than any modern-day politician would ever suggest).
Dan
I’m just trying note the concept. Blinder is hardly non-aligned either. 😉 The article is 30 years old. Roemers’ article is recent and reflective of current research. Still, I think the jury decision is not final.
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