all right let's jump right into it needs
no introduction former reagan economic
advisor art laffer
uh recipient of the presidential medal
of freedom
uh arthur good to see you look i got a
couple things for you
um one of them is this grand
budget design it's like you know the
workers paradise from biden it's like
bulgaria
in its heyday before the wall came down
and stuff like that
so you're reading along in this thing
get to the economic assumptions and get
guess what art we're going to transform
everything taxes spending
greens you name it and there is no
growth
less than two percent growth according
to only their own
omb less than two percent growth that is
about the same as obama biden if you
recall
and a whole lot less than trump so why
do it what's the point
i don't get it at all
well basically what they're doing larry
is taking over the means of production
with this deficits
i mean these huge amounts of bond
offerings there and paying me
a people is really basically taking over
the means of production
the thing that amazes me is not only
will you not get growth which you're
completely correct on
but we haven't even caught up to the
pre-pandemic level with trend
growing uh we're way below that
potential
so we we not only don't get growth but
we're still way below it
so you'll never catch up and you know i
think we're way off the trajectory we
were at the end of trump
uh and frankly it's it's very scary long
run and once they get all that debt out
there let's say you've got debt at 150
percent of gdp or whatever the number is
how do you ever pull it back how do you
undo that you just plain don't
well it's really the japanification of
america
which bothers me a lot as far as
long-term prosperity
and also i mean the minimum wage
and you've got all these other stuff
going to get the unemployment
it's the ability to get the unemployment
rate down by getting people to leave the
labor force
rather than getting jobs right that's
not the way you want to do it so i'll
just read you a snippet
um this is from my friend ben white of
politico
the budget plan the white house unveiled
on friday projects
economic growth of two percent or less
per year for most
of the next decade and after factoring
in inflation that's not much different
than the sluggish face
the u.s endured in the decade after the
financial crisis and great
recession now the point is are okay we
don't agree with these policies
okay got it we don't agree but true if
you
just put yourself in their shoes if you
believed in those policies okay i don't
want you to but if you did
wouldn't you try to sell them on the
basis of more prosperity
jobs wages and growth these guys aren't
even doing that
i mean this is like not exactly a
madison avenue advertising genius play
they're saying follow us back to
bulgaria
but it's not going to work for you we're
not going to really help you
that's the part i don't get why do it
what's the point
but you're completely wrong on the
presumption area they are way over
exaggerating the effects on economic
growth
the growth will be far less than two
percent this is the extreme
positive forecast of these people i'm
serious
look at japan from from 1989 to the
present look at what their growth has
been
look at what's happened to their asset
values in 1989 i think the nikkei was at
38
900 was its peak what is it today 28 30
000 somewhere in that range i mean
that's after 30 years it's declined by
20 percent
that's called a bear market we're
putting ourselves into very much that
same situation
and these guys are way over selling it i
think it's going to be a lot worse than
they're saying if they're able to get
their policies but i'm sort of
tongue-in-cheek here
what you're you're giving them you're
getting credit for honesty
you're saying this is a terrible idea
it's going to socialize and centralize
and bureaucratize
everything destroy the energy sector and
they're being honest by showing us what
allows the economic performance
well i gotta admit that's a new uh
political
advertising approach
i don't think they're being honest i
think they're still way overstating it
i think it's good the growth is going to
be less than that if they do this in
place
i mean it's just amazing what they're
doing why anyone would want to follow
the model of japan is beyond me but
that's what these people are doing and
they want a worldwide minimum
tax on corporations they want to raise
income tax raise the capital gains
they want to literally own all the means
of production and decide what's produced
where
i mean all of your all of the guests on
tv shows all
tell us about a big government get your
hands
off our economy right pull away from
that as reagan said
don't do something undo something that's
what should be done but that's not what
they're doing they're doing just the
reverse you know those spending
multipliers
are probably negative at least over the
long run they're probably negative
they're spending
their taxes
how can you pay people not to work and
expect more people working
that doesn't make sense so it's just
silly so let me get this right
whoever heard of a poor person spent
himself into wealth who ever heard of
that
well that's a good point last one so you
can tell us
with great certainty that you do not
agree
with the bulgarian model before the wall
came down
is that true okay you'll force me into
it no i don't agree with it larry you're
right oh i
confess my sins forgive me
that's what we love about you arthur
you've just got to be honest with you
larry
thank you sir talk soon thanks very much
folks all right coming up