What is the Laffer Curve?


I’m going to cover it while lecturing about Reaganomics to my APUSH class tomorrow. I think a good example/analogy would be very helpful for me. Thanks in advance!

In: 5


Laffer drew a very dumb curve that just says tax revenue goes up if you raise taxes but then you hit a point revenue will go down at the same rate if you raise them more.

It’s not true, it’s objectively not a real thing, but since it’s a baby level cover story for a garbage idea that cutting taxes will make tax revenue go up it’s talked about a ton like it’s this super real thing even though there is zero examples of it in real life and is always some “well I guess it kinda sounds like it would happen sort of in some extreme”

Wait, are you teaching a class, about a subject you don’t know? I must be missing something here