Art Laffer receives Presidential Medal of Freedom

Both of the following links were found at Powerline: Trump Gives World’s Worst Economist the Presidential Medal of Freedom and Trump is giving Arthur Laffer the Presidential Medal of Freedom. Economists aren’t smiling.

These sour economic vandals. It’s not even that they are incapable of understanding what he says, but they are even unwilling to listen. The belief that economies are driven from the demand side is so inane that I find it hard to see how anyone with any sense can take it seriously. Everything about how an economy is driven forward and jobs created is dependent on individuals making decisions to do things, then working out what needs to be done and then doing it. No economy in history has ever slowed because there was an unwillingness to buy things. The idea is so stupid it is hard to imagine how it could ever happen in the world as we know it.

The core issue is Say’s Law. If you don’t understand Say’s Law, let me impress on you that you are incapable of understanding how an economy works. If you are interested, however, you can find out from my Free Market Economics, Third Edition, An Introduction for the General Reader. This is what Art Laffer himself wrote about the book, which you can find on the back cover of the text:

‘This book presents the very embodiment of supply-side economics. At its very core is the entrepreneur trying to work out what to do in a world of deep uncertainty in which the future cannot be known. Crucially, the book is entirely un-Keynesian, restoring Say’s Law to the centre of economic theory, with its focus on value-adding production as the source of demand. If you would like to understand how an economy actually works, this is one of the few places I know of where you can find out.’

The American economy is the only economy that has fully recovered from the effects of the stimulus which followed the GFC. It is also the only economy in the world that is managed largely by the supply-side principles, which is why PDT is giving Art Laffer this award.