Sunday, February 15, 2009

The science of tyranny

The Laffer Curve is a very important economic theory. It is a way of determining how much governments can tax the populations to maximise their revenue.
At 0% they are collecting no revenue, and at 100% they are collecting no revenue.
Governments can either fall on the right or the left of the curve. At the left, we have low taxing and lower revenues. On the right, we have high taxes and the same revenues as on the left. Depending on the government, they will probably either swing between both sides in an attempt to find equlibrium or stay mostly on one side of the curve (either left or right).


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