Income Inequality
What is Income Inequality
the difference in how income is distributed among the population.
What shape is the curve
an upside down U
Who created the Laffer Curve and when was it created
Arthur Laffer, 1974
How long has the income gap been increasing
30 years
What is the peak of the curve
maximized government revenue
Why was the Laffer Curve created
To disprove the idea of that an increase in tax rates would lead to an increased tax revenue
What is at least ONE major cause of income inequality
historical racism, unequal land distribution, high inflation, and stagnant wages
What does the curve suggest
relationship between tax rates and the tax revenue governments collect.
Which economic policy was influenced by the Laffer Curve
Reaganomics
Why does the rich keep getting richer
Their ability to invest
What should be at the top of the U
The ideal rate of taxation for an economy
What did Arthur Laffer believe
taking more money from a business in the form of taxes means the less money the business will be willing to invest
Why does the poor keep getting poorer
Lack of capital and assets
What is Reaganomics
the marginal tax rate decrease in the economic
policy under President Reagan