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Features

Arthur Laffer: cuts succeeded where stimulus failed

High government spending increases unemployment and slows economic recovery

26 October 2013

9:00 AM

26 October 2013

9:00 AM

 Nashville, TN

All the drama coming out of Washington in the last few weeks has obscured some seriously good news: federal government spending is falling. And not at a trickle: think the White Cliffs of Dover. Not since the economic boom following 1945 have Americans seen such a rapid decline in the government’s claim on the nation’s resources — falling by a welcome $94 billion over two years.

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Arthur Laffer is known for the Laffer Curve, which shows the trade-off between tax rates and revenue, but he credits the idea to the 14th-century Muslim scholar Ibn Khaldun.

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