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But I can start with a current topic: tax cuts. Yes, we probably need to start a new thread since that's not "TOP SECRET". The Republicans' mantra is "tax cuts, tax cuts, tax cuts". They believe the Laffer curve (among others), and the believe it tells us that if you cut taxes you end up with more revenue because you stimulate more economic activity. That's been since at least Reagan. It has yet to prove correct. Every time a POTUS does a major tax cut, the deficit goes UP.
Agree, this is another topic, so I'll be brief.
The Laffer curve is predicated on the question, "Where is the point in the economy where the avaialble capital generates to most economic return?" It's not meant to predict any kind of deficit.
Rather, it's built on the classic equation from Macroeconomics:
Y (GDP, or national income) = C (consumption spending) + I (investment) + G (Government spending) + (X-M) (Exports - Imports)
Consumer spending (consumption) is roughly 2/3rds of GDP.
Laffer's notion was, what's the relative impact of G vs. C. If C is 2/3rds of GDP, then increasing C at the expense of G applies capital more broadly into the national economy, providing a stimulus.
Deficits aren't part of that.
