Blast From The Past: Laughing With Laffer

Tyler Durden's picture

Or, rather, make that 'at'. Suffer us this brief detour into history, when hilarity ensues as we watch how Arthur Laffer, one of the "world-renowned", "greatest economists" of his generation and inventor of the Laffer curve, describes the US economy as of August 2006, indignantly making wagers with Peter Schiff that the bums bears will always lose, and otherwise validating the cardinal flaw canon of modern economics, namely that unsustainable debt is really just very  much sustainable wealth.

h/t Sudden Debt

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lolmao500's picture

Very bullish news.... can you imagine all that slave labor moving to the US??

http://global.christianpost.com/news/popocatepetl-volcano-threatning-to-...

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The volcano has already begun spewing red-hot bits of rock, and its opening has expanded. These are signs that the volcano, still quite active, could soon erupt. In a statement by Mexico's National Center for Disaster Prevention, the volcano could produce "moderate exhalations, some with ash, sporadic low to moderate explosions with likely burning fragments, and flaming magma within the crater."

Pladizow's picture

In the end the number of so called "Economists" and CNBC Clowns that will be embarassed on video by Peter Schiff will be stagering.

Ahmeexnal's picture

MXN is at multi year lows:

http://finance.yahoo.com/echarts?s=USDMXN%3DX+Interactive#symbol=;range=...

Goldman Sachs must expect a pyroclastic explosion in the next few hours...

TheSilverJournal's picture

I'm so happy they stopped the housing and stock bubble from fully popping because bubbles are just so fun. Now we get to watch the bond bubble go pop. Nothing can stop the bond bubble from fully popping. There's no entity large enough to bail out the US.

Harlequin001's picture

I'm just so 'wealthy' it hurts...

AldousHuxley's picture

Laffer's arguments;

  1. US economy has never been in better shape
  2. No tax increase
  3. Monetary policy is spectacular
  4. Freer trade better than ever before
  5. Women with 7month old baby love the work so much that she's back at work and enjoys low taxes
  6. his expert opinion is only worth a penny

 

Peter swivels side to side in the beginning of the interview .

 

Laffer is not a stupid guy with Yale and Standford MBA PhD. So why would smart people make illogical conclusions? because they sold out to big money elites to sell Reagonomics bull which deterioriated the middle class power.

economics9698's picture

90% of economists are glorified propaganda men and women.  They believe in fairy tales or are good fairy tale story tellers.  When you understand they are full of misinformation shit and their job is to baffle the peasants with bull shit so the elites can continue their theft you got the correct picture.

The only economists who understand the fucking subject are Austrians.

AldousHuxley's picture

American new world order elites decided that they made it to the top in America. There is nothing more, so they must aim to top the world. Ignore any issues in house such as education, labor, justice, illegal immigration etc, and just focus on military colonialization of key commodity and energy regions.

 

Of course this doesn't work well, but to keep fooling the public to keep them in power, they give the public the facade of getting wealthy: stock (nasdaq bubble), housing value (housing bubble), and plenty of food and entertainment (cheap fake stuff on TV).

 

Public with stupid education, doesn't realize what is happening and keeps them in power until it is too late or expose is too obvious. Then those guys come up with another bubble scam. It has been 30 years and working well.

SeattleBruce's picture

"because they sold out to big money elites to sell Reagonomics bull"

Reaganomics?  Try statism bull of the last 100 years...this aint no 8 year, nor 1 party show...

Oh regional Indian's picture

aha, just wait till you see the great...

BAIL BOND BUBBLE....

Pop that...

ori

NotApplicable's picture

I don't think those people have that emotion.

Clueless Economist's picture

aHHH Cute little Maria Bartoromo is purring, "Stocks well off their lows today on a decrease in jobless claims" 

LongSoupLine's picture

there is nothing "cute" going on there, and her voice can split atoms and melt diamonds.

Dr. Richard Head's picture

...as well as kill pensioners and those foolish enough to believe they will retire from their "investments" in stocks.

AldousHuxley's picture

police chiefs pension are above six figures.

and they get to be "consultants" for another six figures.

it pays to be a dumb dog in a police state.

 

Even in arab spring, falling leaders offered gold to military and police. They didn't care about scientists or doctors.

guns > brain in case of emergency

I think I need to buy a gun's picture

this is one of my favorite all time videos schiff vs laffer.........Schiff vs Norman is a close 2nd

Eireann go Brach's picture

News just in! Laffer is the father of all Khardashian sisters! Explains their utter stupidity now!

EvlTheCat's picture

You need help...  Kardashian post obsession is a treatable disorder. :)

Stuck on Zero's picture

Laffer isn't stupid.  When someone blows as much statist smoke as he is it can only mean he's a tool of Wall Street i.e. paid for his excremental utterances in favor of Wall Street.

AldousHuxley's picture

stupid people make mistakes.

but to make mistakes ALL THE TIME takes a genius to understand ALL of the right answers and purposely take an opposite stance.

 

Laffer is just a sub when that cnbc tool Larry Kudlow is out on vacation

they founded some bs fund together Free Enterprise Fund

why would an economist partner with a freaking journalist? because no other rational economist want to be associated with that fool.

 

CNBC is for fools.

Ahmeexnal's picture

Leisure Suit Larry?

vmromk's picture

FUCK YOU Laffer, you moronic ASSHOLE.

Max Hunter's picture

Yeah.. wow.. I'd like to see that moron come on TV and defend that interview..

withnmeans's picture

I would bet you a penny, HE WON'T... He's a piece of work, should be a government empolyee and work with Timmah!

ZackAttack's picture

We tried that already. He *was* a government employee, on Ronald Reagan's Economic Policy Advisory Board, for 8 years, and the father of Reaganomics.  

That experiment doesn't appear to be finished fucking us yet.

killallthefiat's picture

Then Peter said, "I'll bet you a whole lot more than a penny."  Too bad Peter put all his (clients) winning into Chinese stocks!

NotApplicable's picture

Of course we know they'll never subject him to that treatment.

Which is why he did it in the first place.

Whalley World's picture

Laffer you jerk, pay your bets!

Paul Atreides's picture

Laffer reminds me of an evangelist preacher, maybe even a parrot. Bet me a penny, bet me a penny, it's great! BUCKAWW!

Everybodys All American's picture

Carnys are everywhere ... but always show up on CNBC as experts.

blu's picture

The Laffer curve was a joke back even when Reagan first pulled it out of his ass. Wow did that 1%'er wealth ever trickle down back in the day, you bet it did.

You'd think these quack ideas would go off somewhere and die. Seems not. I guess they think most of us are just stupid. Could be they are right.

Max Fischer's picture

 

 

Even Laffer, himself, has admitted that the theory was dubious at best. Unfortunately, though, it wasn't just a bad theory; it was pure right-wing bullshit propaganda disguised as highly researched economic theory, complete with overly simplistic charts and graphs. It was a seemingly perfect visual to convince the dumb masses to give the rich more tax breaks... just look at the charts!......to deny supply side economics was to deny geometry, itself!  *LOL*  Great trick. 

Not only did it not happen under Reagan, Bush I, and Bush II, but the EXACT OPPOSITE happened under Clinton - higher taxes cut the deficit... DUH! And the economy didn't collapse!  There are, however, some right-wing super morons who will point to a brief increase in tax revenue during Bush II, but that was due to everyone turing their house into an ATM machine.  After 10 years of Bush tax cuts, government revenue is straight into the ditch and our debts are soaring. 

Simply put, just more right-wing lies.

Max Fischer, Civis Mundi

 

blu's picture

When things get really bad they'll come up with another visual along the lines of the Laffer curve in order to justify what they intend to do anyway. Probably be something that proves beyond doubt that $1T a month in deficit spending is sound policy.

Whatev'. I can't care anymore.

GernB's picture

Surely you are not suggesting that the Federal government will have income at a tax rate of 0, so if that's not in contention then you must be suggesting people will work even if you take 100% of their income. To which I would say: only in a society where people are forced to work because they are slaves. If you agree there is zero revenue at 0% tax and 0 revenue (unless you coerce people to work) at 100% taxation then you agree with the Laffer curve.

Max Fischer's picture

 

 

Are you seriously trying to defend the Laffer Curve (and the manner in which it was used politically) by using only the two furthest extreme data points?

If so, you're an idiot.

Max Fischer, Civis Mundi

akak's picture

And are YOU, smug and dishonest statist bastard that you are, going to deny the reality of the so-called "Laffer curve"?

The manifest applicability of it is beyond dispute --- what is NOT beyond dispute, however, is where the overall US tax regime fell on that curve, or where it falls on that curve today, as well as the exact shape of that curve itself.  But to deny that rising tax rates, beyond a certain point, will in fact lead to LESS overall tax collections is mindless contrarianism for its own sake ---- which, however, has never stopped you from engaging in such before.

Your consistently pro-statist, elitist arguments and intellectually empty bluster are as uniformly shallow and puerile as is the typical adolescent as (appropriately) represented by your avatar here.

ljag's picture

Don't hold back...........tell him how your really feel!!!!!!!!!LOL!!!!!!!!

Bay of Pigs's picture

This Max fucker is one of the biggest douchebags to ever hit ZH.

Talking partisan politics? LOL. What a useless tool he is. 

Max Fischer's picture

 

 

But deny that rising tax rates, beyond a certain point, will in fact lead to LESS overall tax collections is mindless contrarianism for its own sake....

That's not even remotely close to what I'm saying.... at all.  

 ...what is NOT beyond dispute, however, is where the overall US tax regime fell on that curve, or where it falls on that curve today, as well as the exact shape of that curve itself.   

WTF?  You CLEARLY do not understand what the Laffer Curve is, either.  *LOL*  Dude....  lol.  JSTFU, for your own sake.  

Max Fischer, Civis Mundi



Max Fischer's picture

 

Nothing but crickets, as expected. 

You're a joke, Akak. 

 

akak's picture

Oh, was there something in your typically antagonistic and puerile stream of (un)consciousness there to which I was supposed to reply?

You are nothing but a seething mass of hate, contradictions, misinformation and logical fallacies, all wrapped up in a smug and arrogant shell.  If I wanted to truly engage anyone on your emotional and intellectual level, I would go debate the merits of feeding the squirrels and screaming at the pigeons with the homeless in the nearest municipal park.

Umh's picture

Ok; try 1% and 99%. There; I doubled the data points for ya.

Doña K's picture

That doubling reminds me of the question: If it's 0 degrees outside and tomorrow will be twice as cold, what would the temperature be?

BTW: The curve does work to some degree, but it does not make one an expert and brilliant economist. There is no such thing as a brilliant economist. Errr. except Paul krugman /s