The Laffer Curve And Its Effect On The People

Milton Friedman and John Keynes are two world renowned economist, with many similar and contrasting views that have helped set the foundation of our economy. Friedman 's ideology on subjects such as the Monetary Policy, Gold Standard, and the Theory of the consumption function are what made him a extremely impactful economist. Keynes has made his impact on the modern day world as well in many aspects. Both of these economists have helped pave the way to a better, more efficient economy.

During the last decade of the Cold War, President Ronald Reagan presented a battery of economic reforms influenced by supply-side economics. The reforms of 1981 and 1986 lowered the tax rate for individuals and corporates, introduced deregulations and simplified taxation. The belief in the Laffer curve, which claims that deregulation and lower marginal taxes will increase government revenue and economic growth, justified the reforms in addition to neoliberal ideas. Did Reaganomics, the Reagan application of free market capitalism, encourage social mobility and prosperity for all citizens, or did it let the wealthy retain and develop their economic status

“Although the economic growth of the United States in the gilded age has been attributed to individual hard work and a government policy of laissez faire, it was in fact encouraged and sustained by direct government intervention.”

Milton Friedman was born in 1912 to Jewish immigrants. He earned his bachelors in mathematics at Rutgers in 1932 although after the great depression and the economic instability of the thirties he focused his masters on studying economics. (Encyclopedia of Economics) He became a

How President Reagan ran the economy was through Supply-Side economics or “Reaganomics”. The idea of this process ran under the belief that businesses should be stimulated by cutting taxes, deregulation, and encouraging investment instead of consumption. The association between cutting taxes, and the country's revenue was also known as the Laffer curve; that tax cuts will yield more revenue for corporations to thrive. Along with economic change, Reagan also believed that the government intruded too deeply into American life. Unlike previous New Deal aspects, he wanted to cut programs that he deemed wasteful within society. During his time as President, he reduced federal regulations by 1/3 of what it had been. Unemployment went up 4% during the first two years of his presidency, but started to go down in

John Pierpont Morgan is considered one of the founding fathers of the modern United States economy. He was an industrial genius that is accredited with the founding of many companies including General Electric and AT&T. However, Pierpont is looked upon as a saint and demon the same. He received a honorary degree from Harvard university that read: "Public citizen, patron of literature and art, prince among merchants, who by his skill, wisdom and courage, has twice in times of stress repelled a national danger of financial panic." But Robert LaFollette, the Wisconsin progressive, saw him as "a beefy, red-faced thick-necked financial bully, drunk with wealth and power." Despite conflicting opinion on his persona, his influence and

To prepare Milton for his career, he possesses a wide range of training through his stellar education. He began his journey by acquiring a B.S. in economics from the University of Nevada Las Vegas. He received his law degree from the George Washington University Law School in Washington, DC.

Alan Greenspan, born in New York City on March 6, 1926, grew up surrounded by economics as his father of Romanian Jewish decent worked as a stockbroker and financial analyst. When he was five years old, Greenspan expressed his skill in mathematics by reciting baseball batting averages and performing large calculations in his head. He attended George Washington High School, where he played clarinet and saxophone with classmate and future musician Stan Getz. After graduating, Greenspan studied clarinet at Juilliard for a short time before transferring to New York University. At NYU, Greenspan began studying economics and completed his undergraduate and graduate degrees. Subsequently, he worked on a doctorate at Columbia University under economist

Alice M. Rivlin is a woman who has achieved a variety of accomplishments in her life. Rivlin excelled in college and earned a bachelor’s degree from Bryn Mawr College, and at Radcliffe College she earned a master’s degree along with a doctorate in economics. With such a high education, it is no surprise that Rivlin got into politics early and held such a variety of positions ("Alice M. Rivlin - Biography”). In fact one of her most pristine jobs later in her career was serving as the Vice Chairman of the Board of Governors of the Federal Reserve System from 1996 to 1999.

Lucas established a theory of supply that recommends people can be misled by disorganized economic policy. Lucas and Paul Romer presaged the birth of endogenous growth theory and the reappearance of inquiries on economic growth in the late 1980s and the 1990s. He also underwrote initial donations to interactive economics, and providing the knowledgeable groundwork for the considerate of eccentricities from the law of one price based on the illogicality of

John Kenneth Galbraith, born on October 15, 1908, was one of American’s more influential economists, longtime Harvard professor, and a U.S. ambassador to India, an author, an economist, and “used caustic wit and an iconoclastic temperament to help set the foundation of modern economic thinking” (http://www.csmonitor.com). He, along with another famous economist, and longtime rival, Milton Friedman, believed that everyone has an idea, and that every idea matters, and were masters of the debates and are both very smart people, however, Dr. Galbraith was more to the progressive tradition, and his work was never really accepted, and criticized. Yet through the presidency of John F. Kennedy, he was a trusted adviser, and the author of more

Milton Friedman was born on July 15th, 1912 in New York City. His parents were poor immigrants and his father died when he was a senior in high school. Despite all of these obstacles he had to overcome, Friedman received a scholarship to Rutgers University and got his B.A., an M.A. in 1933 from the

“George Gilder, whose Wealth and Poverty shot onto the best-seller lists in early 1981, was its Walt Whitman, celebrator of the entrepreneurial future that tax cuts would bring. An even more marginal figure than Wanniski, Gilder was sure that the argument for diminishing returns was wrong and that the application of mathematics to economic enterprise from the early nineteenth century forward distorted the matter entirely. The idea of society as a zero-sum game, he wrote, ‘strikes at the living heart of democratic capitalism.’ Classical economics' fatal mistake, he wrote, had been to emphasize the static intersection of supply and demand curves rather than ‘the turbulent process of launching new enterprise.’ Tax cuts were not about greed, Gilder

Stephen Murray was born in Brooklyn, New York in 1962. He grew up in Westchester County, New York. He went on to earn a B.A. in economics from Boston College and an MBA from Columbia University. In 1984, when he was in his 20s, Stephen Murray was hired by Manufacturers Hanover Trust Company where his business acumen enabled him to rise to the level of a vice president. Mr. Murray

In 1995, Lucas was awarded the Noble Prize in economics, for having developed and applied the hypothesis of Rational Expectation. This, transformed macroeconomics analysis and deepened everyone’s understanding of economic policy. More than any other person in the period from 1970 to 2000, Lucas revolutionized macroeconomic theory. Most of his work led to the work of Finn Kydland and Edward Prescott, which also won them the noble prize