We have a follower called Orphe who provided a link to a video site from the Cato Institute detailing the reasoning behind the Laffer Curve, and he asked that we post the video and comment on the content.
The videos can be seen HERE.
While no one can accuse me of being a Libertarian, I can empathize with their points and see that there conservative position is based on solid, historical facts centered around the founding principles of our nation. However, the facts surrounding the Laffer Curve are irrefutable and move far beyond simple party politics, so the actual affiliation of the creative minds behind the videos is secondary to the primary message that is being presented... higher taxes only result in lower revenue over time.
They use examples from outside the US as well as historical examples from our own economic past... the mini-recession of '91 after the Bush "Read My Lips" tax hike, the Celtic Tiger boom stemming from a reduction in the corporate tax rate of Ireland which went from 50% to 12.5% while the revenues went up 300% and the GDP tripled in 9 years, and Russia's adoption of a national flat tax and how they have more than tripled their revenues from their progressive Soviet past.
Definitely worth watching, but I am not sure there will be much debate here about the merits of the information... all here know and understand the importance of the Laffer Curve. I was actually MORE impressed that the makers of these films took the time to present real OBJECTIVE information... clearly showing examples of when the Curve does not apply, and how those situations can also effect a national economy or why they would be desirable to implement. They avoid using the label, but there is no question in my mind that what they are explaining is basic Keynesian economics, Reagan-style.
It worked once, so who's to argue?
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