Posted on 08/10/2011 5:40:26 PM PDT by SeekAndFind
The only way President Barack Obama can solve the nation’s economic woes is to adopt “common-sense” Reaganomics, the policy’s architect Arthur Laffer claims in an exclusive Newsmax.TV interview.
Laffer said the White House called him in the spring and asked him to speak to Obama’s former Council of Economic Advisors’ chairman Austen Goolsbee – and he had told him exactly the same thing.
“Reaganomics would fix any economy that’s in the doldrums,” Laffer said. “It’s not a magic sauce, it’s common sense.
“You’ve got to get rid of all federal taxes in the extreme and replace them with a low-rate flat tax on business net sales, and on personal unadjusted gross income. That’s number one.
“Number two, you have to have spending restraint. Government spending causes unemployment, it does not cure unemployment.
“Number three, you need sound money. Ben Bernanke is running the least sound monetary policy I’ve ever heard of," Laffer said.
“Number four you need regulations, but you don’t need those regulations to go beyond the purpose at hand and create collateral damage. The regulatory policies are really way off here.
“And lastly you need free trade," Laffer said. "Foreigners produce some things better than we do and we produce some things better than foreigners. It would be foolish in the extreme if we didn’t sell them those things we produce better than they do in exchange for those things they produce better than we do.”
In the interview the veteran economist said Standard & Poor’s was quite right in downgrading the U.S. credit rating – in fact it should have done so far earlier.
(Excerpt) Read more at newsmax.com ...
bump.
For Zero to do this would be like a shark becoming a vegetarian.
Free trade is great as long as one can be assured of a relatively civil world. Reagan’s “evil empire,” Russia, hardly had squat to trade with the outside world, except for some bottles of okay vodka. That’s not true for the new bully on the block, China.
Letting your domestic capability fall inert is a domestic security risk. Might there be a time when the former shirtmakers are wanted back? Ooops, they’re all flipping burgers now. There are boutique American-made shops to be sure, but I don’t think they’d be up to outfitting an army.
Art, baby... I don't care.
Obama and the Democrats aren’t concerned about the economy, they just want to put in their radical Socialist agenda.
DNC Chairman Debbie Wasserman Schultz:‘We own the economy’ - June 15, 2011
You own The 0bama Depression!
We're going to hang you, your commie boss, and all the dims with this Ms. Wasserman Schultz!
FUBO GTFO 2012 !
Art Laffer is one coool old dude. He’s 77 and does a terrific interview. He is on Cavuto often.
He is so smart he picked up his stuff and moved from California to Tennessee.
I love to hear him speak
LOL!
How does that chart show that Norway is raising the maximum revenue from that 10% tax? Each economy would have its own curve, I would think.
I wouldn’t worry about clothes when the next big war will be the last one over in days at best.
Any war requiring mass conscription requiring large amounts of clothing would be unlikely. But we could rapidly create factories to make it. It isn’t like building missiles or bombers.
I do agree that Free Trade must be tempered by LEGITIMATE defense needs, however, and historically we have limited the advanced technology and weaponry other nations are allowed to buy. Urkel is probably giving away the store on a massive scale which is where some of his warchest is coming from.
Most people assume WWIII will be a global thermonuclear exchange, when in truth a country like China still has a real reason to not want to irradiate vast swaths of the world. They can’t decamp to another planet — yet. And they had better be willing to lose a major customer overnight.
There is only one nation capable of doing that to us.
Russia has its own international trade pickles today, if that’s what you mean. It pushes massive amounts of oil every year to countries that are more or less friendly to the US. Seeing the Bear lose its temper might make them think twice.
The ~25% corporate tax rate gives Norway about %10 of their GDP in tax revenue, where as our 35% corporate tax rate gives a much smaller % GDP in tax revenue.
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