Art Laffer and Say’s Law

laffer - us govt spending fall

There is an article by Arthur Laffer at The Spectator that you can find here here. And I only mention it because I want to point out that Laffer had himself tried to resurrect Say’s Law back in the 1980s. If you look at the original supply side revolution which is coincident with the Reagan Revolution, the literature is filled with Say’s Law, and even amongst the comments at the Spectator article, there is this:

Rubbish. Say’s Law (the formal name for the views in this article) has been refuted. I hope Krugman sees this article.

Me too. I hope he does see it. And I hope he does try to buy into this. He would for a change be taking on someone his own size in the heavyweight division. The cuts to public spending are the only way into resurrecting growth. Who knows, the sequester may yet make Obama an economic hero by having the American economy turned around on his watch. Not his doing but there you are.

And if you would like to see a bit more on Arthur Laffer and Say’s Law, this is the place to look. Jude Wanniski was the third in the triumvirate in the supply side revolution, along with the Great George Gilder.

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