Former Reagan economist Art Laffer explained on FOX Business Tuesday how he believes President-elect Donald Trump’s policies could boost the economy.
Monakaexterior Regarding Kudlow, Laffer said serious budget cuts and tax cuts are needed. He added that the Office of Management and Budget (OMB) is designed to give policymakers the tools they need to identify and eliminate government waste, abuse, and fraud.
“They should have done it a long time ago. I mean, OMB is set up that way. [to] We give you all the tools to get in there and find where the waste, abuse, and fraud lies. And if you have Elon Musk and Vivek Ramaswamy, they’ll be able to find a lot of areas where they can cut, and it’s going to be just a great area,” Rafaa told the host when asked about budget cuts. told Larry Kudrow. .
The former economist also said it was necessary to distinguish between the impact of these policies on inflation and economic growth.
“This is really possible. I think it will happen. Don’t get confused, what we really want is to bring down inflation, which would be great, so that the inflation premium on interest rates That’s great, but Biden did a really bad job on this. But also, once economic growth starts, the expected real return on capital will rise very quickly. ” Laffer said.
Laffer said higher revenues not only boost productivity and growth, but also expand the availability of goods and services, ultimately leading to lower inflation and lower inflation premiums. (Related article: “It makes no sense”: President Biden’s national security adviser says he is funneling workers’ tax dollars to Marxists)
“What we really want is higher return on capital, higher productivity, higher growth, and these have two effects,” Laffer said. “One is that real rates of return will rise, and higher real rates of return mean more goods and services will be available. So lower inflation means that at the moment We don’t know which of these two factors plays the most important role, but we do need to get inflation under control.
Renowned economist Peter Schiff has previously said that Trump will continue to carry on the economic agenda in the next administration. Schiff said the economy is in turmoil under President Joe Biden and will face even greater turmoil when President Trump takes office.
During the Biden administration, Americans faced increased spending, and inflation peaked at 9.1% in June 2022. Since then, the inflation rate has subsided. However, the Consumer Price Index, which measures the prices of daily necessities, still reflects a 2.7% year-on-year increase. reported The Bureau of Labor Statistics announced this in December.
Analysts attribute the spike in inflation to massive government spending under the Biden-Harris administration. Recent fiscal data from the U.S. Treasury said The national debt reached $36.16 trillion.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
