Reading Jon Chait this morning:
With predictable fury, supply-siders have denounced this heresy [that Reagan-era supply-side policies might not be optimal today, even granting that they were in 1980]. You can get a flavor of the intra-party debate in columns appearing in places like Forbes or The Wall Street Journal, the later of which retorts, “Good economic policy doesn’t have a sell-by date. (Adam Smith? Ugh. He is just so 1776.)”
The quote is a few months old, but – wow! – what an evergreen formula for zombie economics!
Good economic policy need not be formulated with reference to the economy.
I think maybe we need something a bit more science-fiction-y. Instead of the Laffer Curve, we have the Laffer Event Horizon, which is located in 1974, when Laffer sketched his famous curve on a napkin. After 1974, the economy fell into a black hole, for tax purposes. Specific facts about it could no longer cross the boundary of the Laffer Event Horizon, for policy purposes. A bit more precisely: within the black hole, all tax-like-paths – must be warped down and down, eventually to zero. Especially taxes on the rich.
Just a thought.