Arthur Laffer on the ‘Stimulus’ Package

Dr. Laffer on the so-called stimulus package and rebates.

That ‘Stimulus’ Nonsense – “The proposed rebate of about $600 per man, woman and child is transferred to people based upon some characteristic other than work effort. In fact, if you’ve worked too hard and earned too much, you won’t get a rebate. So in some instances the rebate actually requires the absence of work effort. Now it’s true that some of the people receiving the rebate may also be workers, but working is not the reason each person receives the rebate; it’s simply because he or she is a human being. Thus rebate recipients are given command over real resources for doing something other than working.

In this world of ours, those resources going to the rebate recipients don’t come from the Tooth Fairy. They have to come from workers and producers. If the resources come from workers and producers who thereby receive less for their work than they otherwise would have received, won’t they in turn spend less? Of course they’ll spend less, and the people who now supply them with less will also spend less, and so on down the line. … There is no stimulus from a rebate, period. …
Whenever you observe bipartisan cooperation, hold on to your wallet and run to the basement.”

Earlier posts re: Dr. Laffer:
Tastes Great, More Filling – The Laffer Curve In Action
Laffer Curve Update: Tax Revenue Reaches Highest One Day Total Ever

Tax Cuts, Tax Revenues, and the Laffer Curve …

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