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Why the Laffer Curve Might Be Wrong Here

By ADF Alliance Alert

James Altucher writes at the Wall Street Journal: "Art Laffer posted an op-ed in the WSJ yesterday explaining that the deferring of taxes increases to Jan. 1, 2011, will cause companies to push profits into 2010, making 2010 appearing very good and making 2011 appear awful, perhaps even creating an economic collapse in 2011. Laffer may have missed a few twists . . . Eventually companies have to hire more with their profits. The people they hire then become spending consumers, buying houses, cars, etc. This creates a cycle until equilibrium is reached at about 5% unemployment, where history has generally shown the employment levels to be at a point where there is neither inflation or deflation of wages . . . "

Full post as published by Constitutionally Correct on June 10, 2010 (boomark / email).