Skip to comments.Art Laffer: Obama Must Use Reaganomics to Save Economy ('It's not magic sauce, it's common sense')
Posted on 08/10/2011 5:40:26 PM PDT by SeekAndFind
The only way President Barack Obama can solve the nations economic woes is to adopt common-sense Reaganomics, the policys 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 Obamas former Council of Economic Advisors chairman Austen Goolsbee and he had told him exactly the same thing.
Reaganomics would fix any economy thats in the doldrums, Laffer said. Its not a magic sauce, its common sense.
Youve 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. Thats 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 Ive ever heard of," Laffer said.
Number four you need regulations, but you dont 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 didnt 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 & Poors 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 ...
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.
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
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.
This is a home run for Sarah Palin, whose campaign theme will be Comonsense Conservatism.
It’s late and the Cubs just failed to lose.
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.
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.
“Laffer said the White House called him in the spring and asked him to speak to Obamas 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....
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.
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.
He’ll never admit he was wrong and he won’t change course.
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.
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.