What can Laffer's curve teach us about thinking ?


Laffer's curve is named after Arthur Laffer - an economist in the 70s who drew this on a piece of paper napkin to illustrate that relationship between tax rate and government revenue is not linear. As you can see, it is true that after some point, people will start working less as government is taking so much away and revenue will fall.

Jordan Ellenberg, Author of the book - How to not be wrong - argues about mathematical thinking and non-linearity being a key component of it. The core idea is that using Laffer's curve author wants the readers to encourage thinking non-linearly. Think like this, there would not be continuous growth in all aspects all the time. The growth would plateau and even reduce after some point.

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