The Mythical Laffer Curve

Conservatives everywhere condemn the use of tax increases for fear of the Laffer Curve. This is the idea that if taxes are too high, people will lose the incentive to work and therefore revenue will actually decrease. It is most famous for its counter-intuitive argument that a tax cut could increase revenue. Unfortunately there is little or no evidence to support this claim. History clearly shows that cutting taxes does not increase revenue. The Laffer curve is a political idea used to justify tax cuts for the rich. It is not based on sound economics.

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Marikana Mine Massacre

On the 16th of August South African police opened fire on striking miners in Marikana. 112 people were shot, 34 killed and 78 wounded. There were allegations of murder and counter claims of self-defence as well as comparisons to the Apartheid era. Suspiciously, not a single officer was even slightly wounded. Bizarrely the police responded by arresting 270 strikers but not a single police officer. Recent reports claim that most of the victims were shot in the back and far from police lines. It’s looking more and more like we are dealing with a massacre of innocent strikers, a South African Bloody Sunday. Continue reading “Marikana Mine Massacre”

The Myth Of The Self-Made Millionaire

Most millionaires claim that they are self-made in that they earned their fortune alone. But no person is an island. Every millionaire owes their fortune to the help they received from others. In this world we are so interdependent that no one achieves anything without help from another. Obama was right, we received more help than we can possibly imagine. Our wealth and success are not only a measure of our talents and luck, but also a measure of how much help we had. We are tall because we stand on the shoulders of giants. Continue reading “The Myth Of The Self-Made Millionaire”

Economics Of Discrimination

If we were rational logical people living in a neo-classical world there would be no discrimination. People would only be judged according to their productivity and nothing else. All races would receive equal pay and job opportunities. In fact Milton Friedman even developed a theory in which racist firms would be driven out of business by inclusive firms. Yet discrimination does exist. For generations many businesses would only hire white people. Even today ethnic minorities are paid less than white people and suffered from higher unemployment. The perfect neo-classical utopia does not exist. Social norms determine action just as much as pure economics. We need government to right the wrongs of the free market. Continue reading “Economics Of Discrimination”