Talk:Arthur Laffer

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RfC: Laffer curve in the lead – mention consensus?

The following discussion is closed. Please do not modify it. Subsequent comments should be made on the appropriate discussion page. No further edits should be made to this discussion.



Should the lead add a short sentence noting that there is consensus among economists that the United States is not on the wrong side of the Laffer Curve?

The text would be sourced to this survey of leading economists:. (Original date of RfC: 20 July 2020). New date for the purposes of a RfC restart: Snooganssnoogans (talk) 05:32, 24 December 2020 (UTC)

Information Note: RFC tag removed per WP:RFCBEFORE. There appears to have been zero discussion on this  merely one attempt at an addition that got reverted. Deacon Vorbis (carbon  videos) 13:47, 20 July 2020 (UTC)
For the record, I wholly support the reversion. A statement like that with no context is meaningless. Even with context, this is a biography about Laffer. Placement in the lead (or anywhere really), about a single survey about the current state of a single country is completely off-topic. And what's the "wrong side"? The survey doesn't even say anything about a "right" or "wrong" side; it merely asks about the predicted effects of a tax cut. Putting in the context of an idea which the article admits wasn't even original to Laffer is...just...Jesus man, do you even listen to yourself? (Not to mention that there isn't even universal acceptance that the Laffer curve is a meaningful model, but that's another story). Deacon Vorbis (carbon  videos) 14:03, 20 July 2020 (UTC)
  • You seem very unfamiliar with the topic in question, so here's a summary: Laffer's prime claim to fame is in popularizing the Laffer curve and arguing that the US is on the wrong side of it (that's why half the lead is about the Laffer curve). Being on the wrong side of the Laffer curve is the notion that tax cuts would pay for themselves, a notion that a consensus of economists reject. You want to obscure this consensus – good for you. Snooganssnoogans (talk) 14:16, 20 July 2020 (UTC)
In addition to the reasons cited by Decon Vorbis, WP:GLOBAL is relevant here. The Laffer curve is a general theory that (if correct) would apply to any taxation at any time anywhere on the planet. Randomly gluing some text into the lede about opinions about *one* tax in *one* country at *one* time is absurdly US biased. And you can stop calling this a "consensus". The sited source is simply a survey of some *US* economists, again, US biased. Bonewah (talk) 15:01, 20 July 2020 (UTC)
It's not a "general theory" it is generally viewed as nonsense. It was never more than a rationalization of policies that appealed to Reagan and that later underpinned the career of Laffer. SPECIFICO talk 15:09, 20 July 2020 (UTC)
Well, this article notes that Greg Mankiw, a conservative economics professor at Harvard University said the authors "do not build their analysis on the foundation of professional consensus or serious studies from peer-reviewed journals. . . . The Laffer curve is undeniable as a matter of economic theory. There is certainly some level of taxation at which cutting tax rates would be win-win. (emphasis mine). Even if it were a non-sense theory, its would be a general non-sense theory, not one specific to The US. Bonewah (talk) 15:23, 20 July 2020 (UTC)
Its also worth noting that Karl Case and Ray Fair's 'Principles of Economics' 8th edition, a widely cited reliable source, absolutely does not describe the Laffer curve as nonsense. They say, in part, that "There is obviously some tax rate between zero and 100 percent at which tax revenue is at a maximum. ... Somewhere in between zero and 100 is the maximum-revenue rate". No where in their discussion of the laffer curve do they say or even imply that the theory is 'nonsense'. Bonewah (talk) 15:37, 20 July 2020 (UTC)
There's a difference between the Laffer curve (which no one disagrees with) and Laffer's application of the curve to the US (Laffer has argued consistently for decades that the US is on the wrong side of the curve), which there is a consensus against. As John Quiggin notes, the Laffer curve was "correct but unoriginal" whereas Laffer's analysis that the United States was on the wrong side of the Laffer curve "was original but incorrect." Snooganssnoogans (talk) 16:07, 20 July 2020 (UTC)
And that is why we discuss Laffer's application of the curve in the US in the body of this article. The only real question is whether this survey, not a consensus, but a survey of some economists about one tax in one place at one time is relevant to the lede of a biography about Laffer himself. Bonewah (talk) 16:13, 20 July 2020 (UTC)
Exactly. The "survey of leading economists" in the OP of this discussion fails WP:V because it does not say what the opening statement purports it to say. The questions presented to the economists in 2012 were, in their entirety: "Question A: A cut in federal income tax rates in the US right now would lead to higher GDP within five years than without the tax cut." and "Question B: A cut in federal income tax rates in the US right now would raise taxable income enough so that the annual total tax revenue would be higher within five years than without the tax cut." Nowhere does there appear any consensus among the surveyed economists about the Laffer Curve's general applicability or what side of it the US may or may not be on. We could extrapolate from those responses, especially the responses to Question B, what the economists might think about the Laffer curve but that would be clearly WP:SYNTH. Any general statement about the Laffer Curve's as a theory is not supported by the source offered. Eggishorn (talk) (contrib) 16:20, 20 July 2020 (UTC)
To expand on the above rather insightful comment, the survey doesn't even attempt to ask what side of the curve the US was on at the time. Assume for the sake of argument that a cut in tax rates would raise taxable income enough so that tax revenue would be only slightly lower than without the tax cut. Now compare that with the assumption that the slope of the curve at that point went the other way. The questions asked don't differentiate between getting 95% back and getting 0% or a negative percent back. It is a binary choice: over 100% back or under 100% back. Interesting, but useless when applied to claims about the slope of the curve at a particular time. --Guy Macon (talk) 19:51, 20 July 2020 (UTC)
On a side note, there is no "right" or "wrong" side. First we have to ignore the possibility that there are multiple local extrema on the curve, all while making the simplifying assumption where we treat an entire economy's output as a simple function of tax rates rather than as a complex dynamical system. Ignoring all that, then any point away from the maximum is suboptimal. Either side of the maximum is the "wrong" side. There's only a "wrong" side if you're making a statement with respect to either raising or lowering tax rates, in which case, either side may be the "wrong" side depending on your point of view. So making the statement that we're on the "wrong" side is meaningless and meant only to prejudice the reader. Deacon Vorbis (carbon  videos) 17:04, 20 July 2020 (UTC)

Ah, very similar to the "consensus" based on an IGM survey over at Gold standard. Pelirojopajaro (talk) 14:00, 22 July 2020 (UTC)

Indeed yes. Bonewah (talk) 14:40, 22 July 2020 (UTC)

Why has the original date of the RFC been changed? (I see "Ignore Expired" has also been introduced as well.)Rja13ww33 (talk) 05:52, 24 December 2020 (UTC)

Snooganssnoogans (talk) 06:08, 24 December 2020 (UTC)
Why restart this? Do you think 4:6 against will turn into a consensus to include? Springee (talk) 06:17, 24 December 2020 (UTC)
Kind of odd to extend it since there are no new votes since July (and a slim consensus is there). But we can wait a while and put in a request for closure if no new votes emerge.Rja13ww33 (talk) 18:42, 24 December 2020 (UTC)

!Votes

  • Oppose. (And I'm glad to be the first person to actually put in a "Support" or "Oppose"!) Whether it represents consensus or not, a random statement about the current tax policy of one country makes no sense anywhere in this article. Korny O'Near (talk) 15:11, 22 July 2020 (UTC)
  • Oppose It's not at all clear why such a POINTy comment would be in the lead of a BLP. Springee (talk) 15:38, 22 July 2020 (UTC)
  • Support mention of consensus in the lead, just not in the first paragraph. It should definitely be mentioned in the paragraph that discusses it's use by US conservatives to justify tax reductions. Not mentioning it there would be egregious. LK (talk) 13:43, 27 July 2020 (UTC)
  • Support. Laffer's claim to fame is in very large party due to the Laffer curve and its purported application to US politics. There is consensus among economists that the US is not on the wrong side of the Laffer curve (confirmed with this survey and supported by every single tax cut assessment of the last 50 years), despite Laffer's rhetoric. As economist John Quiggin points out, the Laffer curve was "correct but unoriginal" whereas Laffer's analysis that the United States was on the wrong side of the Laffer curve "was original but incorrect." See also the comment above by LK who has a PhD in economics and has published peer-reviewed research in econ journals. Snooganssnoogans (talk) 13:51, 27 July 2020 (UTC)
  • Support This has been the basis of previously unknown Laffer's lifelong notability. And it's the basis of the Reaganized GOP economic policy platform for the past several decades, taken on faith as the solemn rationalization of tax cuts for the most heavily taxed, i.e. Republican donors. SPECIFICO talk 13:58, 27 July 2020 (UTC)
The Laffer curve? Yes. This one survey of opinions about one particular tax? No. Bonewah (talk) 15:45, 27 July 2020 (UTC)
  • Oppose.Per above. And do note that several other editors seem to oppose it as well but have not specified it here. Bonewah (talk) 16:22, 27 July 2020 (UTC)
  • Support: per Snooganssnoogans soibangla (talk) 17:29, 27 July 2020 (UTC)
  • Oppose - I seriously doubt the majority of our readers will even know what it means, much less care. It doesn't pass WP:10YT but it should be mentioned and defined somewhat in the body text if it truly is as significant as some seem to think. Atsme Talk 📧 17:44, 27 July 2020 (UTC)
  • Oppose if we're having to !vote I may as well make my opposition clear. The proposed edit is supported by a reference that does not state what the proposer wants it to state. That fails our fundamental principles so badly it is disturbing to see experienced editors supporting it. Eggishorn (talk) (contrib)
  • Oppose As per Eggishore's comments (on 16:20, 20 July 2020). I'm not sure if Laffer himself has ever said (explicitly) where the peak of "his" curve actually is. We can extrapolate through his support of various tax cuts where.....but he supported Bill Clinton at one point (who raised the top marginal rate) as well. If we can find a source more explicit on this point, I would change my vote.Rja13ww33 (talk) 23:33, 27 July 2020 (UTC)
  • Qualified Support: I would support this alternative wording: after In certain circumstances, this would allow governments to cut taxes, and simultaneously increase revenue and economic growth. insert Laffer argued that these circumstances were much more common than most economists do, and that the United States was in those circumstances although most economists believe it was not. This is basically what we already have in the section for the Laffer Curve, and it's really this and not the curve itself that Laffer is known for. Loki (talk) 20:14, 24 December 2020 (UTC)
The source in question doesnt support your proposed additions. Bonewah (talk) 17:25, 26 December 2020 (UTC)
But several other sources in the relevant section we already have do. Loki (talk) 01:51, 27 December 2020 (UTC)
Im not opposed to your proposed edit as it speaks to why Laffer is important. The problem is that you and Mx. Granger support !voted for something that is the exact opposite. The proposed edits at issue in this RFC seek to put in the lead not central details about Laffer's role in US economics, but a reference to an informal survey of some economists from 8 years ago about whether or not a change in one particular tax in the United States at that time would lead to increased revenue. As far as im concerned, you can make your edit now as it seems non-controversial to me. However, i would ask that you strike or reconsider your support for the RFC's proposed change as it runs counter to what you seem to support. Bonewah (talk) 03:49, 27 December 2020 (UTC)
I view it as a compromise proposal: it's not a support for Snoogan's exact wording but something that I think preserves Snoogan's intent while hopefully answering some of the objections to that particular wording. Loki (talk) 04:58, 27 December 2020 (UTC)
  • Oppose Seems somewhat absurd to use an 8 year old survey (in which only about 40 economists were polled) that asked for future predictions and, based off that, we extrapolate a "consensus" about the current state of the US economy. And stick this supposed "consensus" into a lead of a BLP? WP:OR is a policy for a reason. Dr.Swag Lord, Ph.d (talk) 23:05, 24 December 2020 (UTC)
  • Support something like Loki's suggestion, as that clarifies the relevance of the example in this biographical article. Oppose including this example in the lead without drawing the connection to Laffer's views. —Granger (talk · contribs) 15:26, 26 December 2020 (UTC)
  • Support Loki's version. A huge part of the article is devoted to Laffer's impact on US politics and economics and on the debate over that, so it is important to have at least a sentence on the mainstream consensus on that impact somewhere in the lead. --Aquillion (talk) 13:16, 30 December 2020 (UTC)
  • Support Loki version. This is one of the main things that Laffer is known for. (t · c) buidhe 03:10, 4 January 2021 (UTC)
  • Oppose To mention the US case in the introduction is geographical bias, to mention the current situation is temporal bias. The rejection of Laffer's view by other economists (when applied to the present moment) should be mentioned elsewhere in the article.Boynamedsue (talk) 15:00, 5 January 2021 (UTC)
I disagree because Laffer is not only an American economist who talks primarily about American economic policy, but at the time he became well known he was an adviser to the US government. Not all mentions of America are bias. (Also, my quote specifically refers to the situation at the time he proposed the Laffer Curve, or rather, proposed tax cuts based on the curve.) Loki (talk) 17:23, 28 January 2021 (UTC)
  • Oppose. Better sourcing needed, even for Loki's version. I'll bet it's out there. But neither proposal is reliably sourced. R2 (bleep) 21:44, 5 January 2021 (UTC)
The sourcing is in the section on the Laffer Curve, which cites several economists stating that Laffer was wrong about tax cuts leading to increased revenue at current tax rates. Loki (talk) 17:23, 28 January 2021 (UTC)
  • Support LokiTheLiar's version or something close to it. Lawrencekhoo, SPECIFICO, et al. are correct that the fact that what this person is notable for does not have much in the way of real-world consensus. So, per WP:FRINGE and WP:DUE we need to make that clear from the lead on down. But we need to avoid editorializing, or overstating the degree to which experts disagree with Laffer (which is by no means unanimously).  — SMcCandlish ¢ 😼  11:03, 28 January 2021 (UTC)
  • Oppose per Springee.  Spy-cicle💥  Talk? 14:07, 14 February 2021 (UTC)
  • Oppose. per above discussion.Sea Ane (talk) 17:02, 11 March 2021 (UTC)
  • Oppose per above discussion. Heart (talk) 05:07, 24 March 2021 (UTC)
  • Support. While debatably terrible, the Laffer curve is one of the top 10 reasons (shit, I'll say top 3) why the American economy is the way it is today. It's just as having a long-lasting impact as other parts of Reaganomics, and that's a pretty damn significant achievement on Laffer's part. 👨x🐱 (talk) 23:25, 25 March 2021 (UTC)
  • Oppose (but support Loki's first clause, see below) I'm sorry but I fail to see how the status of a single country (even if it is the world's second largest economy in ppp terms) at a single point in time could possibly be due weight for the lead in this or any bio. Honestly it comes off as some sort of WP:COATRACK, with helpings of WP:RECENTISM and WP:SYSTEMICBIAS. I get that Laffer was an American and the English Wikipedia is disproportionately written by Americans, but this is ridiculous. 2A03:F80:32:194:71:227:81:1 (talk) 02:56, 4 April 2021 (UTC)
The reason the status of the United States is important is because Laffer was an advisor to the US government when he developed the curve, and was clear that he did it to support Reagan's proposed tax plan. As such, whether the curve actually did support Reagan's tax plan is very important information. (Also, what do you think of my version?) Loki (talk) 05:18, 4 April 2021 (UTC)
@LokiTheLiar: thanks for your reply. I do find your suggestion superior. When I first read the proposal I was most reminded of this (permalink), which is just silly. I like your first clause which is not specific to any one place and time. More on the fence about your second leaning weak oppose. It's reasonable to put a spotlight on the status of the United States at the time he published the work, but that feels more like a body thing than a lead thing. What we absolutely should not be anywhere (barring some dedicated WP:LISTCRUFT which an AfD bizarrely finds acceptable). Are statements explaining that the consensus of economists in YYYY was that in year ZZZZ $COUNTRY was at position foo in economical diagram bar, and that applies regardless of how many Wikipedians are from $COUNTRY. Hope that clears things up. Cheers, 2A03:F80:32:194:71:227:81:1 (talk) 13:23, 4 April 2021 (UTC)
  • Oppose Including that in the lede is tantamount to editorializing. Discussions of where the US (or any other country) falls on the curve belongs in the body of the article. OhNoitsJamie Talk 03:23, 4 April 2021 (UTC)
The reason the status of the United States is important is because Laffer was an advisor to the US government when he developed the curve, and was clear that he did it to support Reagan's proposed tax plan. As such, whether the curve actually did support Reagan's tax plan is very important information. (Also, what do you think of my version?) 05:18, 4 April 2021 (UTC)Loki (talk)
If you mean this version, I still don't believe Wikipedia needs to make that declaration in the lede. Furthermore, the wording is a little awkward; "most economists" being used twice in sentence. OhNoitsJamie Talk 16:30, 5 April 2021 (UTC)
  • Oppose This is not notable anough to place in the lede, but would work well in Laffer curve's lede. ~ HAL333 19:04, 27 April 2021 (UTC)
  • Oppose in the lead of this article, as per all the above reasons. Could go it the text body of Laffer curve or Economy of the United States. Emir of Wikipedia (talk) 18:27, 4 May 2021 (UTC)
The discussion above is closed. Please do not modify it. Subsequent comments should be made on the appropriate discussion page. No further edits should be made to this discussion.

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