Schiff predicted this Global Recession and the financial crises. I liked that Arthur Laffer the man credited with creating the Laffer Curve , got BURNED on this video. This is the economic theory that the Regan administration used as a basis of their economic plan in 1981. The premise of the Laffer Curve is that tax cuts boost revenues. The Bush administration pushed Congress to pass 2 major tax cuts which did not increase tax revenues to the federal government. President Obama has 286 billion dollars in tax cuts of his stimulus plan They were about the same as the one that President Bush enacted in 2001 and 2003. I guess that since the tax cuts went to middle and lower income Americans, instead of folks who have large estates the Republicans did not Line THIS tax cut!
"On August 28, 2006, Art Laffer appeared on Kudlow & Company to debate Peter Schiff, president of Euro Pacific Capital. Laffer made a bet with Schiff that there wouldn't be a recession, and that the housing bubble wouldn't bust in the next year or two. Both agreed to put their credibility on the line and the winner would receive a penny.
Laffer appeared almost two years after that interview, on "Real Time with Bill Maher", on October 24, 2008. Maher asked him, "Have you paid off that bet?" Laffer replied that he had not."
1 comment:
A great video. Schiff comes off as a genius. It's incredible how many of the supply side Republicans he went up against rudely chortle while he speaks. Laffer and Stein -- two Republican semi-heavyweights come off as absolute asses. One word of caution though is that, while Schiff thinks that tax cuts are a bad idea, he also thinks that too much government spending at this time is also bad as the government must print the money (i.e., borrow) and that will simply contribute to inflation, thus counteracting much of the stimulatory effect it would otherwise have. In other words, we're in for a long period of economic pain due to Bush's policies.
Post a Comment