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Art Laffer: Obama Must Use Reaganomics to Save Economy ('It's not magic sauce, it's common sense')
Newsmax ^ | 08/10/2011 | Martin Gould and Kathleen Walter

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 ...


TOPICS: Business/Economy; Constitution/Conservatism; Government; News/Current Events
KEYWORDS: artlaffer; downgrade; laffer; obamadowngrade; reagan; reaganomics; standardpoors

1 posted on 08/10/2011 5:40:34 PM PDT by SeekAndFind
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To: SeekAndFind
THE LAFFER CURVE


2 posted on 08/10/2011 5:41:46 PM PDT by SeekAndFind (u)
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To: SeekAndFind

bump.


3 posted on 08/10/2011 5:43:02 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: SeekAndFind

4 posted on 08/10/2011 5:43:22 PM PDT by SeekAndFind (u)
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To: ken21

5 posted on 08/10/2011 5:44:45 PM PDT by SeekAndFind (u)
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To: SeekAndFind

For Zero to do this would be like a shark becoming a vegetarian.


6 posted on 08/10/2011 5:45:40 PM PDT by Recon Dad ("Don't shoot fast, unless you also shoot good..")
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To: SeekAndFind

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.


7 posted on 08/10/2011 5:49:46 PM PDT by HiTech RedNeck (There's gonna be a Redneck Revolution! (See my freep page) [rednecks come in many colors])
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To: SeekAndFind
Image and video hosting by TinyPic

Art, baby... I don't care.

8 posted on 08/10/2011 5:50:28 PM PDT by newheart (When does policy become treason?)
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To: SeekAndFind

Obama and the Democrats aren’t concerned about the economy, they just want to put in their radical Socialist agenda.


9 posted on 08/10/2011 5:50:48 PM PDT by fortheDeclaration (When the wicked beareth rule, the people mourn (Pr.29:2))
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To: SeekAndFind
Bottom line, 0bama is too ignorant, obstinate and stupid to do anything more than what he has been doing. The economy won't improve until he is a distant memory - if the Country can hang on that long!

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 !

10 posted on 08/10/2011 5:53:54 PM PDT by The Sons of Liberty (Psalm 109:8 Let his days be few and let another take his office. - Mene, Mene, Tekel, Upharsin)
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To: SeekAndFind

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


11 posted on 08/10/2011 5:57:32 PM PDT by bert (K.E. N.P. +12 ....Rats carry plague)
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To: SeekAndFind

LOL!


12 posted on 08/10/2011 6:06:17 PM PDT by Indy Pendance
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To: SeekAndFind

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.


13 posted on 08/10/2011 6:09:32 PM PDT by arrogantsob (Why do They hate her so much?)
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To: HiTech RedNeck

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.


14 posted on 08/10/2011 6:15:46 PM PDT by arrogantsob (Why do They hate her so much?)
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To: 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

It's against every fiber in Obama's body to do what Laffer suggests. I expect to see pigs fly before Obama would endorse "common-sense" economics as advocated by Laffer. I doubt Obama even knows who Laffer is or understands the tax-rate vs tax-revenue curve. It's too mathematical for him. He's the type who only understands static analysis (and that's a stretch) and not dynamic analysis.
15 posted on 08/10/2011 6:19:32 PM PDT by truthguy (Good intentions are not enough.)
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To: arrogantsob

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.


16 posted on 08/10/2011 6:20:19 PM PDT by HiTech RedNeck (There's gonna be a Redneck Revolution! (See my freep page) [rednecks come in many colors])
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To: HiTech RedNeck

There is only one nation capable of doing that to us.


17 posted on 08/10/2011 6:24:17 PM PDT by arrogantsob (Why do They hate her so much?)
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To: arrogantsob

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.


18 posted on 08/10/2011 6:27:39 PM PDT by HiTech RedNeck (There's gonna be a Redneck Revolution! (See my freep page) [rednecks come in many colors])
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To: SeekAndFind
With all due respect to Art Laffer, everyone seems to assume that Obama wants the economy to improve, when he's demonstrated with a mountain of empirical evidence that he desires the exact opposite through his policies, and is succeeding I might add.
19 posted on 08/10/2011 6:33:25 PM PDT by SpaceBar
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To: arrogantsob

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.


20 posted on 08/10/2011 6:48:51 PM PDT by douginthearmy
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks SeekAndFind.


21 posted on 08/10/2011 7:34:25 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: SeekAndFind
"It’s not a magic sauce, it’s common sense."

This is a home run for Sarah Palin, whose campaign theme will be Comonsense Conservatism.

22 posted on 08/10/2011 8:37:59 PM PDT by 2nd Bn, 11th Mar (The "p" in Democrat stands for patriotism.)
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To: 2nd Bn, 11th Mar

It’s late and the Cubs just failed to lose.

“Commonsense”


23 posted on 08/10/2011 8:39:35 PM PDT by 2nd Bn, 11th Mar (The "p" in Democrat stands for patriotism.)
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To: SeekAndFind

If you want to see something interest, look into the percentage of GDP collected in taxes verses tax rates over that same time period. No matter what the tax rate, government at all levels can’t get more than about 20% of GDP for a sustained period of time.

Therefore if you don’t want deficit spending, spending must be less than 20% of GDP or it simply won’t work. We’re currently spending something north of 25% of GDP at just the federal level..

Another factor is is states and cities are demanding a piece of that 20% of GDP maximum. A larger piece than they ever demanded before. That leaves even less for the Feds to collect without crashing the system.

It isn’t much more complicated than that.


24 posted on 08/10/2011 9:10:14 PM PDT by DB
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To: DB
I watched Greta tonight and she had the Democrat Governor Of Maryland on.

According to him, 45% of the debt is because of the Bush Tax Cuts and another 15% is because of Iraq and Afghanistan, you know, the Bush wars. Oh yeah, and that Stimulus plan is working really good.

Tax Receipts increase 35%+ after the Bush Tax Rate Cuts are implemented and the big lie continues unabated.

Great wasn't thrilled with the speech the guy gave because she had him there to discuss other things. For a Liberal, Great appears to look for the facts and not just follow the talking point meme.

25 posted on 08/10/2011 9:25:13 PM PDT by Kickass Conservative (If Sarah Palin was President, you would have a job by now.)
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To: SeekAndFind

“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.”

This is reminiscent of the scene from Atlas Shrugged where the head of state has John Galt brought to his hotel suite and offers him anything imaginable, if he will only tell them (those in power) how to fix the national crisis....

Just sayin’....


26 posted on 08/10/2011 10:18:52 PM PDT by Grumplestiltskin (I may look new, but it's only deja vu!)
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To: Grumplestiltskin

re: head of state has John Galt brought to his hotel suite and offers him anything imaginable, if he will only tell them (those in power) how to fix the national crisis....

_____________________________________________________________________________________________________________________________

Could you tell us again whether John Galt gave the head of State any advise and if he did, whether the head of state heeded it?

Here we have Obama who spent MONEY to form a debt commission composed of republcians and Democrats — Simpson-Bowles.

The Simpson-Bowles Commission gave him, what I think, a good starting point to work with, including flattening tax rates, lowering corporate taxes to make them more competitive, and reforming entitlements. THIS IS HIS OWN COMMISSION MIND YOU !

What did this head of state of ours do? He SHELVED the Commission’s findings and never even brought it up to this day. That’s the kind of inept/ideological leader this country is so unfortunate to have.


27 posted on 08/11/2011 8:07:03 AM PDT by SeekAndFind (u)
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To: douginthearmy

That I can see but that does not prove that the rate Norway charges generates the maximum amount from that tax. It appears to be comparing different things.

The chart shows Norway receives the highest percentage of its taxes collected from the corporate income tax but does not show that the rate is at the optimal rate. There are too many variables not considered or specified.


28 posted on 08/11/2011 10:35:55 AM PDT by arrogantsob (Why do They hate her so much?)
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To: Recon Dad

He’ll never admit he was wrong and he won’t change course.


29 posted on 08/11/2011 10:40:08 AM PDT by jersey117
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To: arrogantsob

I agree the chart is incomplete. It does not tell the full story. Perhaps CEOs shift profit to their companies to reduce their income tax since the corporate rate is lower.. many factors. From your initial comment I thought you did not understand the data on the chart.


30 posted on 08/11/2011 4:22:28 PM PDT by douginthearmy
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To: douginthearmy

The data is interesting and appears to prove the Laffler Curve but actually only appears to do so. We do know that there are various means of shifting profit within the corporate context. And the countries most probably have different definitions of what expenses can count against gross income.

I am not sure that even if all the tax regimes were identical would it actually prove the Laffler curve.


31 posted on 08/15/2011 1:31:28 PM PDT by arrogantsob (Why do They hate her so much?)
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