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Cake day: October 6th, 2023

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  • steeznson@lemmy.worldtoMemes@lemmy.mlCapitalist logix
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    13 days ago

    I agree with this. Communist like systems where there is central control of resources encourages corruption as people vie to get closer to the central control of the resources. Capitalism is just more honest about the fact that many people - not all of them - are fundamentally self-interested and entices them into cooperation with others by offering the carrot of individual rewards. Those are probably the same people that would try to exploit the system if it were more centrally controlled.


  • I remember looking at charity jobs when I was graduating with my humanities degree before I got into tech. Revealingly, the alumi I was speaking to who worked in the sector said something like, “At it’s core you need to remember that working for a charity is essentially a sales job.”

    Made me nope tf out of there lol.















  • I think we agree about the nature of scientific enquiry, how it is all based on inductive reasoning and cannot provide the certainty of mathematics. Additionally, it looks like we agree that the Laffer Curve has been used to justify bad policy in the past.

    However, I don’t think that the theory has been debunked in the way you are describing. There is broadly a difference of opinion between Keynesian economists who are skeptical of the theory and then Supply-Side economists who endorse it; and then a whole spectrum of views in the middle from Behavioural economists or other schools of thought who are more ambivalent.

    Academics who do support the view have done empirical studies over the years that they believe suggest that the Laffer Curve is real, see:

    • Romer & Romer, 2007: The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks
    • Mertens & Ravn, 2013: The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States
    • Trabandt & Uhlig, 2009: How Far Are We From The Slippery Slope? The Laffer Curve Revisited

    It’s a matter of live debate in the field regardless of your opinion of the theory.



  • All economic theories are unproven, approximations about how economists think people might behave. There’s a reason it is often referred to as the ‘dismal science’. Quite often they are based on counterfactuals and projections of what might have happened.

    The Laffer Curve is not a rule which always reflects reality but it has explanatory power in certain situations, since logically there has to be a point where avoiding taxes becomes more appealing than paying them.

    Regan, et al deploying the theory as part of their political rhetoric - potentially in bad faith - shouldn’t discredit the concept itself because doing so would be throwing the baby out with the bath water. It’s an ad hominen attack against an economic theory; a bit like saying capital controls are always bad because President Xi in China frequently uses them.