Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (48863)	6/8/2006 9:34:47 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 90947

Tim, in general equilibrium theory, it is possible to show that circumstances can arise where welfare can be improved by the destruction of surplus resources. Just thought you'd want to know. ;-)

To: TimF who wrote (48863)	6/8/2006 9:34:55 PM
From: Lazarus_Long	Read Replies (2) \| Respond to of 90947

I'd call it the other way. If you can't show that small tax cuts in already low tax rates lead to increases in GDP, then the Laffer Curve is wrong. It's that simple. " Prep for WW2 caused GDP to increase fast. Nothing like making things to get blown up. :-)" If building tanks and ships and planes and bombs had such a clear positive effect than any time we needed to ramp up the economy we would just order up some more. Surely you aren't arguing that the outbreak of WW2 and the US entry into it ended the Great Depression? Roosevelt had tried to spend his way out before; he just couldn't get enough spending authorized. The war ended that problem since the existence of the nation was at stake. And, no, you can't do this any time you want; you need a reason for people to be willing to buy it. Pearl Harbor provided that. OK. so you're paying men to dig holes, then fill them again. In some sense that's what war is. But you pay the men to dig and fill those holes and they then spend their pay. And the shopkeepers they give that money to give it to others for provisions who ....