In trying to argue that very high tax rates lead to lower total government revenues, the Wall Street Journal used the following graph. They think the Laffer Curve is the line of best fit, or something close.
As the mildest attention to the graph reveals, however, it's just a random line that goes through an outlier and doesn't bear any interesting relation to the collection of points on the graph.
We've all encountered many cases of people wantonly imposing bad theories on recalcitrant data. But I've never seen such a graphic example before.
Friday, July 13, 2007
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2 comments:
How did WSJ miss the obvious applicability of the smiley-face function?
Perhaps if they combined it
with this data. and combined the cost of health care that all the others have as a part of government, but Americans pay excessively and separately.
My Website has links to the Google gadget that notes many other interesting things about their graph, that Luxembourg, and Norway also have the highest per capita income, and the UAE the worst Medical outcomes of the countries noted.
So the graph is interesting, It is just the stupid laugh-er curve stuck on it that is not
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