Re: Laffer Curve

From: smithaa02 (asdf_at_asdf.net)
Date: 07/05/04

  • Next message: Johnny Marcos: "Re: US dollar: modern history" 
    Date: Sun, 4 Jul 2004 21:50:22 -0500

    <royls@telus.net> wrote in message news:40e840f5.1793414@news.telus.net...
    > On Sat, 3 Jul 2004 18:13:06 -0500, "smithaa02" <asdf@asdf.net> wrote:
    > >The context is changed. The landowner before had leveraged the peasents
    to
    > >the max, to which when the peasents' wealth increases through taxation
    they
    > >are more able to pay the higher prices, so the landowner does just that.
    >
    > Nope. Wrong. Flat wrong as a matter of objective fact. If you had
    > more money, would it somehow make you willing to pay more than $5/yr
    > for something that would allow you to increase your annual income by
    > at most $5?

    You make it sound as if they buyer is the only person determining price
    which is misleading. The sellers of the means of production will have more
    competition for their products because the have-nots have more wealth after
    the taxes, thus meaning they (the owners) can raise prices because of their
    increased bargainning power.

    > >To which changes when the peasents have more money as obtained from tax
    > >revenue.
    >
    > Nope. Flat false. Elasticities are completely unaffected.

    The wealthier an area is, the higher the prices. Compare prices of
    necessities in Africa to the US, or rural areas to urban areas, or smaller
    cities to metropolises and you will see this to be true.

  • Next message: Johnny Marcos: "Re: US dollar: modern history"

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