In a pre-interview before the Matson Money Investor Symposium, Art Laffer, long-time adviser and friend of Caldwell Trust Company, gives his outline for returning the US to robust economic growth. Currently, according to Laffer, the US economy is producing well below potential to the tune of $4.5 trillion and the number of people working stuck at around 59% of the population with no improvement in 5 or 6 years, the previous peak being 65.5%. The keys to spurring economic growth here in the US according to Laffer are:
- Low rate, broad based flat tax
- Spending restraint
- Sound money
- Free trade a la David Ricardo
- Reducing regulations
Laffer’s prediction is that today is like 1978. His view is that the senate in the upcoming election goes to the Republicans and they introduce pro-growth policies. And a bull market in stocks could be in store. Furthermore, Laffer extends economic strength to a stronger position in the globe vis-à-vis implementation of effective foreign policy.
