disinformation’s readers come through yet again. Responses to my last blogpost were extremely varied and thought provoking, with some well-reasoned and others less so. The persistence of themes played out in some of the latter so impressed me that it well pleases me to once again examine the big ol’ “Fail” written all over Paul Ryan’s (R-WI) endorsement of the Laffer Curve, especially its implications for ‘The Velocity of Money’.
Remember ‘The Velocity of Money’? That’s the basic economic concept introduced in our post about the hypothetical castration of Goldman Sachs. It’s a thumbnail measure of how efficiently an economy employs its capital—the more often a single dollar is spent during a given year, the higher the rate of employment. Any number of other theoretical implications can be drawn from that; the higher the rate of employment, the greater economic, social and political equality, the higher the rate of technological innovation, etc., etc.… Read the rest