In contrast to the often false claims of progressive socialism, the benefits of supply side economics and free market capitalism once again win the day as the Presidential Medal of Freedom goes to economist Arthur Laffer, whose theories on tax cuts have guided intelligent fiscal policy since the 1980s.
President Donald Trump said, “Well this is a big day, for a very important subject. Today it’s my privilege to award our nation’s highest civilian honor to the father of supply side economics Dr. Arthur Laffer. Few people in history have revolutionized economic thought and policy like Dr. Art Laffer he developed a brilliant theory, shaped unprecedented economic reforms and helped turn a severe recession into a remarkable boom.”
President Trump shared how Dr. Laffer proved that the supply side theory grows the economy and government revenue without unfriendly business regulation or increasing taxes and thus allows the free market to naturally foster prosperity through innovation and job creation.
The president said, “He proved that the most powerful way to grow the economy and raise government revenue was not to increase tax rates, but to adopt strong incentives that unleash the power of human freedom and innovate, create jobs, and deliver greater opportunity to all Americans and he’s proved it over and over again.”
Laffer expressed optimism for America and a humble gratitude to the salt of the earth who helped make his success possible and said, “And all I can say is wow. I mean you know President Kennedy established the current Presidential Medal of Freedom and both President Reagan and Margaret Thatcher were recipients. My business partners here, my business partners, friends, and fellow dream catchers, a number of whom are here today by the way have allowed all of this to happen for me and I’m eternally grateful. They are the salt of the earth and in fact they actually live the lives that we economists just talk about. They actually do it and it’s for and it is for them that we do what we do. They have kept, do keep, and will keep America prosperous.”
Having co-authored the book ‘Trumponomics: Inside the America First Plan to Revive Our Economy’ with Dr. Laffer, the president who credits Laffer for his $1.5 trillion tax cut package for boosting the economy shares the classic napkin story as well as how the Supply Side theory proved critical academia incorrect.
The president said, “Prominent academics call this theory insanity, totally wacky and completely off the wall. With optimism, confidence and exceptional intellect Art would go on to prove them all wrong. He proved them wrong on a number of occasions. Art drew on his napkin a series of lines and a curve that changed history with the now famous Laffer Curve. Still a very, very highly respected economic curve. Art showed that if tax rates are too high people stop spending and they stop investing. The result is less growth and lower tax revenues. On the other hand at the certain point on the curve, lower tax rates spur investment, economic growth and raise government revenue.”
Includes reporting from the Associated Press