Plain Sense Economics

Arthur Laffer is credited with the eponymous theory that a decrease in tax rates can lead to an increase in tax revenues. Even if the original theory may have been scribbled on a napkin, it still holds sway with the supply side contingent. The simplified explanation is that by reducing tax rates, income earning individuals [...]

At about the 6th or 7th week of my Principles of Macroeconomics class we have a kind of broad (though not deep) understanding of how the economy works, how we measure it, and some of the things government does to influence it. We’ve learned about fiscal policy and monetary policy; we have a rough idea [...]

Each term our principles of economics classes look at the issues of free trade versus protectionism. We review the theory – comparative advantage – that argues for free and open markets among nations. And we review the common arguments used to defend tariffs and other trade restrictions. At the top of this list is saving [...]