1. 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 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.
2 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.
3. 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.
4. Laffer said he has no doubt the country will win its top rating back, but only when economic policies are completely turned around. He said President Barack Obamas administrations only economic plan seemed to be to expand government ownership of the means of production. They have nationalized the health care industry pretty extensively. Theyve done that with home building as well. Theyve tried it with the auto industry as well. So they have moved very, very deliberatively and purposefully toward extending the government ownership of the means of production.
5. People dont work to pay taxes, people work to get what they can after taxes. Its that very private incentive that motivates them to work. If you pay people not to work and tax them if they do work, dont be surprised if you find a lot of people not working.
6. Laffer had high praise for the role the tea party has played in bringing the problem of the deficits to the fore. The tea party is not the problem, the tea party may well be the solution, he said. They are critical to the future of the country in a positive way. They are the only fiscally sound people I know out there all the time. I dont know that I would go as far as they go on a lot of issues but I surely respect their movement very much.
Laffer: Obama Must Use Reaganomics to Save Economy
2 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.
3. 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.
4. Laffer said he has no doubt the country will win its top rating back, but only when economic policies are completely turned around. He said President Barack Obamas administrations only economic plan seemed to be to expand government ownership of the means of production. They have nationalized the health care industry pretty extensively. Theyve done that with home building as well. Theyve tried it with the auto industry as well. So they have moved very, very deliberatively and purposefully toward extending the government ownership of the means of production.
5. People dont work to pay taxes, people work to get what they can after taxes. Its that very private incentive that motivates them to work. If you pay people not to work and tax them if they do work, dont be surprised if you find a lot of people not working.
6. Laffer had high praise for the role the tea party has played in bringing the problem of the deficits to the fore. The tea party is not the problem, the tea party may well be the solution, he said. They are critical to the future of the country in a positive way. They are the only fiscally sound people I know out there all the time. I dont know that I would go as far as they go on a lot of issues but I surely respect their movement very much.
Laffer: Obama Must Use Reaganomics to Save Economy