Thursday, September 10, 2009
Art Laffer's legacy: Falling real earnings
Art Laffer is a master propagandist. He tells anyone who'll listen (and there are many) that the vaunted "supply-side" economics utilized during the Reagan era--of which he was the key architect--transformed the American economy from malaise to prosperity.
Yet the data show otherwise. His policies produced the second worst performance in real incomes over a 24 year period. Real earnings under Laffer's policies dropped 1.0%, second only to Jimmy Carter's abyssmal 7.6% decline. In contrast, real earnings for workers under Johnson, Nixon and Ford increased.
Laffer says the best savings account is a good, high-paying job. Too bad his policies came nowhere close to providing that.