Tuesday, August 09, 2005

The story of the Laffer curve

This is a story of my dad, not of me, but one that has bothered me for years, with a certain relentless gnawing at my subconscious.

My dad was a grad student at University of Chicago at the time (the early 1970s), looking for a place to rent. For some reason (if I have my facts straight), Art Laffer of the Laffer curve and supply-side economics (or Reaganomics if you prefer) decided to rent his house out to grad students (this part of the story has never made much sense to me). He and my dad were talking over a drink or some such to discuss the details, when he drew the Laffer curve on a napkin for my dad.

Here comes the part of the story I've never been able to get over.

My dad lost the napkin.


He lost the napkin on which Laffer had drawn him the Laffer curve.

This keeps me up some nights.

Needless to say, my dad isn't an economist.


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