Friday, June 18, 2004

History of the Laffer Curve

Hey, it turns out that the Laffer Curve wasn't actually invented by Arthur Laffer after all. He has a piece, "The Laffer Curve: Past, Present, and Future", in which it turns out that there is evidence of its existence in Medieval times. According to Laffer, "The Laffer Curve, by the way, was not invented by me. For example, Ibn Khaldun, a 14th century Muslim philosopher, wrote in his work The Muqaddimah: 'It should be known that at the beginning of the dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments.'" So it seems that perhaps the Dark Ages weren't so "Dark" after all. OK, (I'll get off my medevialist soapbox now.)

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