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For decades, the political right has used the Laffer curve to justify tax cuts. The argument by former San Diegan Arthur Laffer and other “supply side” economists is that lower tax rates boost growth so much that they actually increase revenue, but a 2012 survey of 40 U.S. economic experts from across the ideological spectrum showed none believed in this theory. That hasn’t stopped Republicans from Ronald Reagan to Mitch McConnell to Donald Trump from using it to justify cutting taxes. Trump even gave Laffer the Presidential Medal of Freedom.
Now a growing number of people on the political left are embracing their version of the Laffer curve. It’s called Modern Monetary Theory (MMT). And it’s being used to argue that the U.S. government can simultaneously adopt a Green New Deal and single-payer health care while guaranteeing jobs for all. Advocates include high-profile Rep. Alexandria Ocasio-Cortez, D-New York, Stephanie Kelton, a former adviser to Sen. Bernie Sande
Italy will ban entry to travelers from Bangladesh
From CNN s Livia Borghese
Italy will ban travelers from Bangladesh, the Italian health ministry said in a statement on Wednesday.
The statement said the travel ban would prevent anyone that has stayed in or transitioned through Bangladesh in the past 14 days from entering Italy.
The statement added that due to the worsening coronavirus situation in Bangladesh and India, stricter quarantine measures for people who live in Italy will be imposed, however it did not clarify details.
Some more context: India has now become home to the world’s worst coronavirus outbreak and fears of its spread across the region have prompted some countries in Europe to impose travel restrictions.
By Anna Hirtenstein U.S. stocks opened higher Thursday on the prospect of as much as $1.8 trillion in new government spending that could spur economic growth. The S&P 500 added 0.8%, suggesting that the broad-market index may resume its march toward a fresh record. The Nasdaq Composite Index climbed over 1%. The Dow Jones Industrial Average advanced 192 points, or 0.6%. The stock market rally resumed after President Biden outlined proposals on Wednesday for his new American Families Plan, which would boost spending on child care, education and paid leave. Investors optimism was also buoyed after Federal Reserve Chairman Jerome Powell said the central bank would continue supporting the economy, while noting signs that growth has revived and the labor market is strengthening.
Provided by Dow Jones
By Anna Hirtenstein and Paul Vigna U.S. stocks rose Thursday as investors cheered encouraging data on the economy, a strong batch of corporate earnings and the prospect of as much as $1.8 trillion in new government spending. The Dow Jones Industrial Average added 0.4%, the S&P 500 gained 0.6% and the Nasdaq Composite rose 0.4%. If those gains hold to the closing bell, they would put the S&P 500 at a fresh record. The morning provided investors with fresh signs of the economy s recovery. The U.S. economy grew at a 6.4% rate in the first quarter, approaching its pre-pandemic size, and weekly jobless claims fell to their lowest level since the pandemic began last year.