Laffer Curve

Today on the way into work I fired up Google Listen, my replacement to XM radio with the new phone.  Every day I listen to Dave Ramsey's free one hour podcast which 99% of the time is purely call in advice. So when he has a guest I get kind of giddy and worked up inside.  I don't listen to political shows, right or left, they are way too emotional for my tastes and I don't agree with a lot of points on either side of the fence.  About five years ago I ditched these shows and just started focusing on money talk.  Eventually they cross and blur their lines, but I think this is the one instance where it was educational and introduced me to an amazing concept I never knew was behind a few of the stronger financial eras in American history, the Laffer curve.

http://en.wikipedia.org/wiki/Laffer_curve

I don't want to go into much detail or debate on the subject.  The topic has been called trickle down economics and drug through the mud a few times, but basically to me it boiled down to balance.  The more you tax, the less there is to collect on, the less you tax the fewer revenues you receive.  Where is the middle ground?, Where are we currently on the curve?, etc.

I would also suggest listening to other episodes of the podcast since this is normally a financial advice show.  We have paid off everything but my Taylors Falls real estate stupid tax (which I did before I listened to him) using his advice.  It isn't much different from the mathematical way of paying off the highest interest item first and snowballing the rest forward, he just sorts the debts by amount owed from small to large and factors in the addictive qualities paying off a debt can have.  It really does get you hooked to paying stuff off and keeps you on the fast track.

Anyways, I will state if you are 100% pro-Obama save your time, this is a middle to right leaning conversation.  I have very left leaning friends that may read this (the advantage of not caring about politics too much) and I don't want this to appear to be a trick.  I think it is good information either way and presented very well but neither of the people talking are fans of the current administration (I maintain my fence sitting attitude).  At the same time they aren't bitching and moaning about the current administration in the conversation either, so if you are only 80% in favor it is still worth a listen.

Podcast Link:
http://www.daveramsey.com/media/audio/podcast/podcast_itunes.xml

Direct Link to 5/26 episode:
http://www.podtrac.com/pts/redirect.mp3/a1611.g.akamai.net/f/1611/23422/9h/dramsey.download.akamai.com/23572/audio/mp3/itunes/05262010_the_dave_ramsey_show_itunes.mp3

I promise my next post will be properly nerdy.