-Keys to Prosperity-
America’s Boom and Bust
S&P 500: Nominal vs. Real Price Appreciation
January 1960 – April 2012
-30.5%
+700%
(’00 – ’12)
(’82 – ’00)
-60.5%
(’72 – ’82)
1960
1965 1970
1975
1980
1985
Past performance is no guarantee of future results.
1990
1995
2000
2005
2010
Source: U.S. Bureau of Labor Statistics, Standard & Poor's, Laffer Associates
1
How to Soak the Rich
Top Marginal Income Tax Rates and Income Tax Share for the Top 1% of Earners
1970-2009
Past performance is no guarantee of future results.
Source: Internal Revenue Service, Statistics on Income, “Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in
Current and Constant Dollars, and Average Tax Rates,” Table 1. Available at: http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html
2
Rich Pay More Than Their Fair Share
2010 Income and Income Tax Shares
40
Top 1%
Bottom 50%
37
35
30
Percent
25
20
19
15
11
10
5
2
0
Income Share
Income Tax Share
Past performance is no guarantee of future results.
Source: Internal Revenue Service, Statistics on Income, “Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles
in Current and Constant Dollars, and Average Tax Rates,” Table 1. Available at:
http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html
The Laffer Curve
Real Federal Revenues and the Top Marginal Income Tax Rate
Past performance is no guarantee of future results.
Source: Office of Management and Budget, Historical Table
1.1, Available at
http://www.whitehouse.gov/omb/budget/Historicals
3
Helicopter Ben
Year on Year Monetary Base Growth, bi-weekly, percent, through April 2012
QE2
QE1
Past performance is no guarantee of future results.
Source:Federal Reserve Bank of St. Louis, Monetary base Growth,
Available at: http://research.stlouisfed.org/fred2/series/BASE
10 Year Treasury Note Yield
October 1962 to June 2012
15.7 Peak
1.83
(10/22/12)
Past performance is no guarantee of future results.
Source:http://research.stlouisfed.org/fred2/series/CPIAUCSL/
http://www.treasury.gov/resource-center/data-chart-center/interestrates/Pages/TextView.aspx?data=yield
4
Education and Medical Prices Skyrocket
While Import Prices Drop
CPI, Percent Change, 2000 to 2009
80%
70%
60%
44%
50%
40%
24%
20%
0%
-5%
-6%
-20%
-40%
-39%
-60%
-80%
-76%
-100%
All Items
Education
Medical
Care
Energy
New
Vehicles
Past performance is no guarantee of future results.
Apparel
Software
Computers
Bureau of Labor Statistics, Consumer Price
Index, Available at:
http://www.bls.gov/data/#prices
Number of Years It Took for Major Technologies
to Reach 50% of American Homes
Past performance is no guarantee of future results.
5
High Technology
Guns and Butter: Federal Spending Explodes
1995 - 2012
$3,000
Defense Spending
Billions of U.S. Dollars
$2,500
$2,000
Total Nondefense Spending
(Discrestionary and
Mandatory)
Nondefense
$1,500
$1,000
$500
Defense
$0
1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
Past performance is no guarantee of future results.
Source: Congressional Budget Office, Historical Budget Data, Available at: http://www.cbo.gov/
6
High Corporate Taxes Make the U.S. Uncompetitive
U.S. Corporate Tax Rate v. Average for Developed Countries
Past performance is no guarantee of future results.
Note: The bars are the average tax rate in the rest of the world.
Percent Job Losses in Post WWII Recessions
7