‘Economic Witchcraft’
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Your editorial did not mention the other side of the equation that comprises supply-side economics.
When Art Laffer drew his famous curve on a napkin in a restaurant in Washington, he stressed both sides as more or less of equal importance. Of course the easiest part to put into effect, legislatively, was a tax reduction. This tax reduction has the exact effect that Laffer projected, i.e greatly spurring economic growth.
The second part of supply-side economics, which Laffer also stressed, was to eliminate transfer payments to the upper and upper middle class (goodies if you will) to bring federal revenues and expenditures below 20% from 2 or 3 points above 20%. Had this been done we would have a more or less balanced budget today.
The nature of the legislator is to a great degree the root cause. The legislator in general is so busy trying to fit the pieces together that they cannot see the big picture. Fortunately, we have two individuals like Rep. Jack Kemp (R-N.Y.) and Art Laffer who indeed can see the big picture.
ROBERT E. BOLMAN
San Luis Obispo
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