Art Laffer: Is Trump Saving Or Breaking The Economy?

A presidential economic advisor grades Trump's policies so far

The new Trump Administration has wasted no time deploying its ambitious and disruptive economic policies.

Tax cuts, aggressive trade re-negotiations, de-regulation, DOGE-driven cost reductions -- a potential new sovereign wealth fund.

What are the intended benefits of these policies?

Are they likely to succeed?

Are they being implemented in the right way?

Might they tip the economy into recession before the long term benefits materialize?

I can think of few better people to ask these questions to than today's guest, who has served as an economic advisor to President Trump — as well as to many other previous presidential administrations, both Democrat & Republican.

Today, we're fortunate to welcome back to the program economist Dr Arthur Laffer. He was the first to hold the title of Chief Economist at the Office of Management and Budget in the early 1970s. He then later served as a member of President Reagan's Economic Policy Advisory Board. He's perhaps best known for developing the Laffer curve, a model for determining the optimal balance between tax revenues and economic growth.

In this discussion, he grades each of the major pillars of the Administration’s current economic policy.

For all the details, click here or on the video below:

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Adam’s Notes: Dr Art Laffer (recorded 3.17.25)

EXECUTIVE SUMMARY:

• The Trump administration has aggressively pursued its economic agenda, focusing on tax cuts, deregulation, and trade renegotiations. Additionally, discussions have emerged about creating a sovereign wealth fund. Art, a veteran presidential economic adviser, lauds the administration’s speed and effectiveness, particularly given the slim congressional margins. He argues that the policies aim to stimulate growth while maintaining economic stability, though questions remain about their long-term impact and potential risks of recession before benefits fully materialize.

• Art supports the administration’s commitment to tax cuts, emphasizing the extension of previous Trump tax cuts and the introduction of new incentives, such as eliminating taxes on tips and overtime pay. He sees these as pro-growth measures that enhance work incentives. Additionally, Art highlights a broader vision of tax reform, referencing his past work with Jerry Brown on a flat tax system. Under this model, all federal taxes, except for sin taxes, would be replaced with a simple, flat-rate tax on business net sales and personal income, which he argues would dramatically boost economic efficiency and eliminate the need for the IRS.

• While Art has historically opposed tariffs as economically inefficient, he acknowledges