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 [...]

In Principles of Macroeconomics we compare the dueling strategies of John Maynard Keynes and supply side advocates. Keynesian strategies rely on government spending to stimulate demand during recessions. Supply siders argue that we should reduce tax rates, and let income earners (individual and corporate) keep more of what they earn, thereby increasing their incentive to [...]