This article was written about a year and a half ago, but is still relevant to understanding fiscal stimulus and the multiplier effect that results. Harvard professor and macroeconomist Robert Barro presents his view.
http://online.wsj.com/article/SB10001424052748704471504574440723298786310.html
Both Keynesian and Laffer Economics seem counter intuitive to me But I would side with Laffer any day. The way I see it different areas of the world are in competition with each other on who can offer the lowest tax rates. The states that can offer lower rates will attract more businesses. An increase in businesses will increase Tax revenue. I still don’t understand the multiplier effect so maybe when once we go over it in class I will understand Keynesian Economics more.
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