I’ve written before about the fiasco that’s been going on in Kansas, Art Laffer’s Toxic Prescription. Since the 1970s, Laffer has been selling the same old supply side snake oil. The idea is that cutting taxes will so stimulate the economy that it will actually bring more money into the government in the form of taxes. It isn’t true that there is no such thing as a free lunch, but this supply side myth is not one of those free lunches. Given our low level of taxation, it literally never works. But over three decades of failure has not stopped Laffer from continuing to push this idea.
Kansas is ground zero for this right now. Sam Brownback used Laffer’s ideas as an excuse to do what Republicans always want to do: cut taxes. This is not about economics. This is religious faith, which is why intellectual mediocrities like Art Laffer are held up as heroes on the right. But things have not worked out. The tax cuts have not spurred growth — unemployment is higher than it is in surrounding states. And the government has had huge deficits. The response from Brownback is that these things take time. Just keep waiting and eventually all will be well. Of course, the cuts to education are here today. And if the tax cuts were going to work, they would have worked by now.
But I learned something new about the Kansas story from an article by Mark Binelli in Rolling Stone, The Great Kansas Tea Party Disaster. He noted, “Back in 2011, Arthur Laffer, the Reagan-era godfather of supply-side economics, brought to Wichita by Brownback as a paid consultant…” Interesting. I knew that Laffer had consulted on how to destroy the Kansas economy, but I didn’t know it worked that way.
Here’s the thing. Since supply side economics is a religious faith, you don’t go hire an expert who will look at your options and decide on the best one. You decide what you are going to do and then you hire Art Laffer as a way to justify it. Laffer isn’t an economist; he’s a public relations device. So bringing him in to “consult” is picking your solution, because you know that Art Laffer has only ever had one idea (and it isn’t even his). So if you hire him, that’s the idea that you will get.
Many years ago, I was the head of software development at a high tech start-up. We did amazing work — arguably the best work I’ve ever been part of. But there was a shake-up among the owners and the brilliant founder of the company was pushed out. Suddenly, the company was controlled by a bunch of money guys who didn’t understand anything about technology. They hired a friend with a technological bent, but who was totally unqualified for the job. And he proceeded to destroy pretty much everything that was developed under the company’s founder. That was mostly on the hardware side. But at one point, they decided to hire a software consultant. This guy did work on web-based applications. So he studied what we were doing and — What a surprise! — he decided that we should convert the software to be a web-based application.
This is my experience with consultants. In general, they aren’t the generalists you would think. Instead, there is one thing they know and when hired, they always find that the best solution is that one thing they know. In the case of my clueless employers, I don’t think they understood what they were doing. They probably met the guy at a bar and that was good enough for them. But clearly Brownback knew what he was getting. Laffer was not going to surprise him.
The whole thing is remarkably disingenuous. We actually know pretty well what works in terms of economic policy. But there are always conservative economists around to tell conservatives whatever it is that they want to hear. Alberto Alesina is there to tell them that budget cuts in a recession will create a boom. Greg Mankiw will tell them that stimulus spending is good when a Republican is in the White House, and that it is bad when a Democrat is in the White House. Funny that. And Art Laffer, the one trick pony, will tell them tax cuts will pay for themselves. We would be dealing with more open-minded people if we were dealing with the Spanish Inquisition.
H/T: Ed Kilgore
As you probably know, I’ve been paying pretty close attention to the race for control of the Senate. You can see the six main models listed on the sidebar on the right. And recently, things have not been going so well, as I discussed in,
The reason this gives me hope is that polls usually are off by quite a lot more than that. Looking just at midterm elections (presidential election polling is better), the
Before getting to the birthday, on this day in 1947, Walt Disney testified before the House Un-American Activities Committee (HUAC). Disney ratted on Herbert Sorrell, David Hilberman and William Pomerance. But maybe “ratted” is the wrong word, because he didn’t actually disclose any information. He just figured they were commies. And how did he know? They were part of the 1941 animators’ strike. Like most conservatives then and now, any liberal cause from workers’ rights to civil rights to environmental regulation must be a communist plot. There are many reasons why people generally have a bad opinion of Walt Disney today. This is one of them. But I mostly only care that his cartoon shorts sucked. Thank God for Warner Bros!
You would know I was being ironic if I wrote, “Those subhuman blacks are such racists!” But if I were a conservative, well, you would have to assume that I was serious. I know this sounds like an extreme example, but conservative lawyer Larry Klayman was over at that bastion of sanity WorldNetDaily Friday,
Ramesh Ponnuru now works at Bloomberg View, which goes along with my theory that any smart conservative will eventually end up with a good job at a mainstream news outlet because there are so few conservative writers who aren’t totally insane. But while I like him and think he often has really insightful things to say about American politics, he is usually just a conservative who can’t see beyond his limited worldview. Take, for example, his article today,
Over at Vox this morning Brad Plumer reports,
Meanwhile, Andrea Thompson at Climate Central reported, 
On this day in 1925, the comedian
We in America love the Kurds, even though the only thing we know about them is that they aren’t Muslims. Fun fact: the Kurds are actually Muslims. What’s more, they are predominantly Sunni, so I guess Saddam Hussein didn’t gas them because of their religion. In fact, that whole thing just makes no sense. We all know that all Muslims are exactly the same, agreeing on everything including that they hate the United States because of our freedom. (Joke’s on them! We’re getting rid of our freedom fast!) So okay, I guess we have to all agree that not all Muslims are the same. Or continue to believe that the Kurds are some kind of exotic Christians like the Ethiopian Catholics.
Ed Kilgore wrote a good article over at Talking Points Memo that really can’t be repeated enough,
It seems that
This morning over at Washington Monthly, Jim Sleeper wrote,