Dan Mitchell: A Primer on the Laffer Curve
Ralph Benko has a column today that will make you ponder:
Shortly thereafter I was able to plant the suggestion, through a mutual friend, that Gov. Cuomo name the Empire State Plaza tower building, the tallest skyscraper between NYC and Montreal, in honor of Albany’s beloved, dying, mayor Erastus Corning, 2nd. Cuomo promptly did so. Soon thereafter I got tipped off that Gov. Cuomo was going to be making an appearance at the local PBS affiliate’s telethon.
I volunteered to answer phones that night and, there, handed Mario Cuomo Jude Wanniski’s The Way The World Works. This book had inspired me to enlist in the supply-side revolution. Cuomo took it and remarked, “Hey, I know this book. It’s Jack Kemp’s bible. I’ll read it with interest. Thanks!” At my prompt Jude contacted Cuomo but nothing came of it.
Mario Cuomo went on to serve honorably as governor for three terms even without adopting the supply-side agenda. He is mostly now remembered for an eloquent speech at the 1984 Democratic nominating convention. “A Tale of Two Cities” was a soaring flight of political rhetoric, propelling him to party stardom, and for a long coy flirtation with a presidential run. The Democrats who adopted the supply-side agenda of equitable prosperity, Bill Bradley and Dick Gephardt, rose in national stature.
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The fight between former President Obama and President Trump on claiming American economic prosperity has been heating up, but former Reagan economist Art Laffer declared the verdict is clear: President Trump caused the thriving Trump economy. “Trump has caused the Trump economy and deserves all the credit for it,” Laffer told FOX Business' Stuart Varney on Tuesday. “His policies are right on mark … and they really are his policies. President Trump understands the economy. Obama didn't.” Obama inherited an economy on the rocks after the market crashed in 2008, and, Laffer said, he was able to bring it back, albeit slowly. What Americans are seeing now in the Trump economy, he said, is a “continuation and a surge … that is second to none.” “President Obama is a fine man, but he’s not an economist,” Laffer said. Laffer said the seven-year-long recovery under Obama was the slowest in history and now Americans are flourishing in the boom Trump created thereafter. “This is the Goldilocks economy if I've ever seen one,” Laffer exclaimed. “And it's because President Trump understands economics … You get the growth of the U.S. staying at very high rates. You get tax revenues coming in nicely. You keep inflation under control. I mean, what's more to ask?”