The Humor Behind the Laffer Curve

Most of us know of the Laffer Curve.

Yesterday, Art Laffer was on Rush with Roger Hedgecock and made a statement to the effect of – illegal immigrants should be allowed to stay because all they really lack is a little paperwork.

Dug up an interesting article on Laffer here are some excerpts:

On immigration:

Immigration is the lifeblood of American prosperity. These people are not a problem, they are a solution. When you get this high-quality labor coming in – including illegals – it does not get any better. If we were able to stop illegal immigration, you’d see California fall off the face of the earth.

Controlling our borders and verifying that people who are in this nation is not just a matter of paperwork; it is a matter of the Rule of Law.

If we ignore the laws of our nation, how in the world do we expect people in Iraq to understand those principles?

On the trade deficit:

We’re the only developed country that is a growth country. Do growth companies lend money or borrow money? They borrow money. We are the capital magnet of the planet. Where would you like your money invested? The Middle East? How about Hugo Chavez’s Venezuela? [To generate the dollars needed] to buy U.S.-located assets, [foreigners have] to sell more goods to us, and they’ve got to buy less goods from us. The only way they can generate the dollar cash-flow to invest in the United States, is for them to run a trade surplus with us, and us to have a trade deficit …

Do not think of our trade deficit as a problem. It is an answer. These people are providing us with the real resources that increase our output, employment, production, productivity.

Why do we want to allow China the surplus to throw US dollars around and drive up the price of oil? Every dollar that China obtains from American commerce can be used to price us out of the world market.

Being right on economics does not mean someone automaticly correct on national policy.

If our prosperity is based on illegal immigration, then our prosperity is not legitimate and liable to burst just as the dot com bubble did.

And do we really want to have the prosperity of our nation to be built on the backs of people whose first act in this nation is to disrespect and disobey our laws?

Talk about a slippery slope.

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