In this lesson, Dr. Laffer details the origins, practical uses, and theory behind the Laffer Curve. The Laffer Curve looks at the relationship between tax rates and tax revenues. The basic theory behind this relationship is that changes in tax rates have two effects on revenues: the arithmetic effect and the economic effect. The arithmetic…
Markets certainly aren’t immune to failure–however, many economic models exploring “market failure” and classic textbook examples criticizing free-markets utilize unrealistic models that underrate the innovations of real-world capitalism, and which simultaneously overrate the ability of political saviors. In this lesson, Dr. Laffer dissects the flaws of popular criticisms of laissez-faire capitalism. Link to article: Perfect…
To most people, the Fed remains a mysterious entity. In this lesson, Dr. Laffer pierces the fog by applying basic economic principles to this intimidating topic. He explains how they make money and how, contrary to popular belief, they do not set interest rates. Link to article: Money Makes the World Go 'Round
Regardless of a country’s natural resources, culture, or education, the institutions it has in place are far more significant in explaining its economic development. Countries with secure private property rights, the rule of law, and free markets tend to have higher per capita incomes and faster economic growth. In this lesson, Dr. Laffer describes the…
Everybody knows that the government spends a whole lot more money doing the same job than the private sector would—and usually doesn’t do as good a job. This pattern isn’t just a coincidence. There are straightforward reasons for the tendency of government interventions in the market to mess things up. In this lesson, Dr. Laffer…
This comprehensive study on Kentucky’s economic history and prosperity agenda examines state revenue, pensions, tax structure, and political corruption. While Kentucky’s economic performance has historically ranked poorly, Dr. Laffer offers remedies for a path forward. Link to study: The Commonwealth of Kentucky - An Economic History and Prosperity Agenda
Take a couple of minutes to brush up on your free market knowledge with a crash course from Dr. Laffer.
It’s a fact: economists know that monetary policy caused the Great Depression. The economy of the late 1920s was overheated with a bloated stock market—caused by excessive tax cuts for the rich, unsupervised banks and overleveraged credit. The inevitable reckoning came at the hands of an ultra-conservative Federal Reserve, tight monetary policy and an inflexible gold standard.
