Posts Tagged ‘supply-side’

Trump Awards Arthur Laffer the Medal of Freedom

June 20, 2019

Trump Awards Arthur Laffer the Medal of Freedom

Failed businessman Donald Trump awarded the Presidential Medal of Freedom to economist Arthur Laffer. “Freedom” here must refer to freedom from reality. Dr. Laffer popularized the “supply side” theory of economics, which holds that if you cut the taxes of rich people so they have even more money, some of it will magically trickle down to society’s less wealthy. This fiction was a favorite of Herbert Hoover, daddy of the Great Depression, and early-onset Alzheimers Ronald Reagan. You can see why the notion would be attractive to Mr. Trump, who became a millionaire at the age of 8.

Arthur Laffer revived this “supply-side” zombie with a visual aid, the “Laffer Curve,” allegedly first drawn on a cocktail napkin in 1974. That theoretical chart, based on wishful thinking and zero data, purports to show that tax cuts for the rich will boost the economy and pay for themselves. While the curve’s drinking-binge origin tale seems apt, it’s a fiction, mythologized by Dr. Laffer’s hype man, conservative pundit Jude Wanninski. The story is now enshrined in GOP dogma and, embrassingly, at the Smithsonian.

Donald Trump, despite the populist rhetoric of his campaign, enthusiasticly slashed taxes for the rich once elected, which helped no one but the wealthy. The medal award is yet another example of Mr. Trump doubling-down on a lie. How could the Laffer Curve be untrue when Arthur Laffer got the Medal of Freedom? Of course, maybe he really got it for co-authoring a book of fawning fiction called Trumponomics.

More:

“Trump is giving Arthur Laffer the Presidential Medal of Freedom. Economists aren’t smiling.” Elizabeth Popp Berman, Washington Post

“Trump Awards Medal to Controversial Tax-Cut Champion Laffer,” Margaret Talev and Justin Sink, Bloomberg

“Trump Awards Kook Art Laffer for Inventing Fake Curve,” Jonathan Chait, New York Magazine

“Why are we still pretending ‘trickle-down’ economics work?” Morris Pearl, The Guardian

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Trickle-Down Economics Is Trickling Away

October 11, 2018

Trickle-Down Economics Is Trickling Away

That old voodoo economics has the president in its spell, but where’s the magic?

Noah Smith: “If Trump’s corporate tax cuts end up having no observable effect on workers’ pay, it will be the final blow to the supply-side worldview.”

— “Trump Puts Supply-Side Economics to Its Final Test,” Noah Smith, Bloomberg

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Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.

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Trump Economic Policy

August 10, 2016

Trump Economic Policy

Donald Trump — meat purveyor, TV reality star, and Republican presidential candidate — trotted out some phrases disguised as an economic plan on Monday. They were phases familiar from the last 30 years of the GOP’s trickle-down, deregulating, big-corporate, no-taxes-for-the-rich philosophy, the failed policies that crashed the world economy when Republican leadership was last inflicted upon the nation, making the rich even wealthier at the expense of the rest.

After lambasting the Republican elites and their policies during the primaries, why is Mr. Trump suddenly embracing the old GOP worldview? Looks like he wants those wealthy guys to fund his general election campaign– he’s peddling high-dollar tickets to fundraising events at the homes of the rich. No wonder he named “six guys named Steve” and other billionaire hedge fund and real estate speculators as his “economic advisers“.

More:

“Sliding Trump Seeks Solidarity With Establishment He Spurned,” Sahil Kapur, Bloomberg

“Donald Trump Sells Out to Trickle-Down Economics,” John Cassidy, The New Yorker

“Trump’s Frankenstein economics,” Ben White, Politico

Related:

“Donald Trump wants to slash your child care bill. But he’s doing it all wrong.” Jeff Spross, The Week

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Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.