I remember reading Jude Wanniski's influential book, The Way the World Works. I was wowed. George Gilder and I go way back. Gilder's book is probably the most influential for supply-siders, Wealth and Poverty. Richard Rahn--whom I've linked to recently--is very good. He demonstrated to me in a Cato publication that lowering taxes during the Reagan years increased revenue. And I enjoy Arthur Laffer a great deal.
Well, there are real-world examples showing the truth that humans respond to incentives/disincentives, the great insight of this economic thought.
#1. Western Europe and the US have the same tax revenues despite Europe's higher tax rates. Liberal economists eat their words."Whose Laffing Now?"
#2 Amity Shlaes compares Maine and New Hampshire. This is what Warren T. Brookes used to do in showing how NH would bounce back sooner than her New England neighbors from a recession (and have a less severe shock to boot). Shlaes could also compare the US and Argentina, where the latter had a slightly larger economy per capita about 70 years ago before embarking on ruinous socialist policies that impoverished her vis-a-via the US.
Well, there are real-world examples showing the truth that humans respond to incentives/disincentives, the great insight of this economic thought.
#1. Western Europe and the US have the same tax revenues despite Europe's higher tax rates. Liberal economists eat their words."Whose Laffing Now?"
#2 Amity Shlaes compares Maine and New Hampshire. This is what Warren T. Brookes used to do in showing how NH would bounce back sooner than her New England neighbors from a recession (and have a less severe shock to boot). Shlaes could also compare the US and Argentina, where the latter had a slightly larger economy per capita about 70 years ago before embarking on ruinous socialist policies that impoverished her vis-a-via the US.
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