To the Left of the Maximum on the Laffer Curve

The S&P ended this week below it’s close on the day Trump’s tax cuts were signed into law. Whatever positive effect they had, the market is nevertheless down.

As I will keep reminding everyone, the Laffer Curve is a curve not a line, and we’re to the left of its maximum. On that side of things, the cuts don’t pay for themselves and they don’t supercharge growth. Even the most basic theory behind these kids of cuts predicts the outcome we have before us.

It isn’t that the theory is wrong; it’s that they aren’t even bothering to use it.

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