How to Put an End to Recessions Caused by Lockdowns and Tax Increases
China Starts World War III With COVID-19 [Part 7]

We spoke with Dr. Arthur B. Laffer, an economic advisor to President Trump, on the impact of Mr. Biden’s economic policies.


Dr. Arthur B. Laffer


President Trump’s Economic Advisor

Born in 1940. After graduating from Yale University, Dr. Laffer received his MBA and Ph.D. in economics from Stanford University. Dr. Laffer is the founder and chairman of Laffer Associates, an economic research and consulting firm. He is also known as the father of supply-side economics, which became the foundation of Reaganomics. Dr. Laffer was an economic advisor to President Trump’s 2016 presidential campaign. He has authored many books including “The End of Prosperity: How Higher Taxes Will Doom the Economy — if We Let it Happen” (2008) and “Trumponomics: Inside the America First Plan to Revive Our Economy” (2018).

—Mr. Biden’s coronavirus advisory board is suggesting a nationwide lockdown instead of state-level lockdowns that Democratic governors are currently imposing.

Dr. Laffer: The coronavirus is very dangerous to an 80-year old like me, but people who are 30-years old have no danger from the coronavirus. Why should the government put the same restrictions on 30-year-olds than it does on 80-year-olds? It shouldn’t. You don’t want to shut all the schools down, but elderly teachers should not be required to teach during that period.

The government should put in certain rules and regulations to let people make their own decisions. People make very good decisions about themselves, and you can’t put the same restrictions on everyone. Coronavirus advisors are advocating for lockdowns because they are responding to meet the needs of government officials.

Biden’s economic policies also lean toward expanding governmental authority.

He wants to have a stimulus bill of many trillions of dollars as one of his policies to ‘stimulate the economy.’

Government produces vaccines, and they do it very well. I think it’s right for the government to spend money in order to provide the coronavirus vaccine to its people. I’m just against increasing unemployment benefits and giving money to people who don’t work. This type of stimulus spending incentivizes people not to work, so it’s not really a ‘stimulus.’ They’re dependent on an incorrect Keynesian policy.


Incentives for Politicians

Dr. Laffer: Have you ever seen politicians who don’t like spending money?

Now, company executives have different incentives than politicians because they get paid on an incentive basis for being profitable. Nancy Pelosi and Joe Biden don’t get paid that way. They have no limit to how much they want to spend your money. The Japanese government also is no different.

—The poorest people will get hurt due to the lockdown economy, and increased government spending will cause greater taxes.

Dr. Laffer: Politicians don’t care. They’ve got the power. The only way you can take power away from politicians is to put them on commission and pay them on performance. It should be based on incentives all the way. That’s how you prevent national and state-level economies from getting worse.

How to Put an End to Recessions Caused by Lockdowns and Tax Increases
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