Laffer Throws Curve with Latest Theory

American Economic Alert ^ | Tuesday, August 29, 2006 | Alan Tonelson

[A. Pole]

17th C. Spain was not a free-market system, dont'cha know?

Two questions.

Can you give me the examples of "free-market systems" from the past?

Is USA "a free-market system"?

[Centurion2000]

It has to be the latter... Not even the Chinese are going to sell us stuff and never cash the check.

We but Chinese crap with our dollars, they in turn buy oil with those dollars. The Saudi's, Kuwaiti's etc ... take that money and buy oil extraction equipment, ships, real estate and stocks in the USA with that money.

One way or the other our dollars come back.

[A. Pole]

Its all about Oil. If you take oil of this of 'trade deficit' nonsense, we end up with a trade surplus in the tens of billions each month.

And how "you take the oil our of" this?

The second biggest reason would be the incredibly cheap manufacturing costs in China

If "its all about Oil", then you cannot have "second biggest reason" like that.

Its a net plus for the US consumer and the economy since the vast majority of the profit is being made here in the US.

In the SHORT term perhaps.

[Alter Kaker]

Actually, New World gold ruined Spain's economy, by inducing hyperinflation. Additionally, it undercut domestic economies (who needs to work when everybody's a millionaire?), but it funded other economies, especially in France and Italy. Gold was to Spain, what oil ultimately will be to Saudi Arabia. Spain is worse off for having had it.

[llevrok]

Glad to see you are off the floor

I am drawn to people with names like "Laffer".

[llevrok]

ARTIST: Sam Cooke
TITLE: Another Saturday Night
Lyrics and Chords


{Refrain}
Another Saturday night and I ain't got nobody
I've got some money 'cause I just got paid
Now, how I wish I had someone to talk to
I'm in an awful way

[A. Pole]

Additionally, [New World gold] undercut domestic economies

How different it is from USA dollar being the world currency?

[A. Pole]

Cripple our economy and the world's economy goes away.

Are you really from Moldova?

[dennisw]

btttt

[TopDog2]

And why is Kia opening that plant? Why did Honda open a plant here? Why does Honda make large displacement motorcycles here instead of making them in Japan and importing them? The "T" word maybe?

[Erasmus]

When I trade a vending machine $1.00 for a soda, we both come out even.

Actually, you both come out ahead.

For a dollar, you get something you value more: a coke.

For a coke, the machine gets something it values more: a dollar.

[cibco]

LOL!! Thanks..

[raybbr]

What do you think happens with our trade deficit? They give us goods and we give them paper.

Paper that they are using to buy oil, material, finance armies with, etc.

[q_an_a]

the voice of reason spoken by a person with data to support an arguement - you will go far grasshopper.

[HankReardon]

The domestic economy is looking sickly right now? Compared to what!? Of course, there had to be a slowing, the American economy recently has been the greatest, most robust and healthy national economy the world has EVER known! Please explain yourself.

[hedgetrimmer]

the American economy recently has been the greatest, most robust and healthy national economy the world has EVER known!

The American economy is being looted by the "free traders" who are using American taxpayer money through USAID and internationalist institutions like the World Bank, the IMF, the WTO, the inter-American development bank, the UN, the OAS and a multitude of other groups, and through direct wealth redistribution via outsourcing, offshoring,and foreign direct investment to expand THEIR markets for THEIR private gain. Do you not see how this affects the US and the freedom of its citizens? It has made us slaves to the global economy, because it cannot exist without stealing from us.

The 'healthy economy' is being propped up by slave labor and kowtowing to communist governments, a massive influx of low cost illegal alien labor and the national security stealing foreign direct investment of enemy and philosophically unfriendly nations like China, the middle eastern countries like Saudi Arabia etc. In the meantime we have the most massive federal and state governments in the history of the US populated with the most profligate spenders this nation has ever known. But don't worry, be happy, our children will have to pay our debts for us. Right......

[ChessExpert]

Mercedes builds a plant in Alabama, Kia in Georgia.

Why does Honda make large displacement motorcycles here instead of making them in Japan and importing them? The "T" word maybe?

“T” word?

That is too elliptical for me. What do you mean?

[TopDog2]

Honda built a motorcycle plant here to get around Tariffs.

[dljordan]

Good Lord!! That's an amazing "surplus" she has there.

[ChessExpert]

Tariffs!

I was afraid you meant Takeover!

I don't know the current state of tariffs. We used to have quotas on Japanese cars. I don't know if we do anymore.

I think the U.S. is a great place to invest.

It seems to me that Mexico has potential as a place to invest. It has a large workforce. It is close to the U.S. market. With more Mexican employment, sales to Mexicans would go up. But it is politically corrupt. There is too much risk of government shake downs from the local to national level. Poor Mexico. And their problems become our problems.