Former Reagan economist Art Laffer responds to former President Obama taking credit for the economy and job recovery.
Eleven years ago today, near the bottom of the worst recession in generations, I signed the Recovery Act, paving the way for more than a decade of economic growth and the longest streak of job creation in American history. pic.twitter.com/BmdXrxUAUf— Barack Obama (@BarackObama) February 17, 2020
Stuart Varney: President Obama taking credit in a tweet for the economy and jobs recovery here it is:
Barack Obama: “Eleven years ago today, near the bottom of the worst recession in generations, I sign the Recovery Act, Paving the way for more than a decade of economic growth and the longest streak of job creation in America history.”
Stuart Varney: Former Reagan economist Art Laffer is with us now. All right, Art, you saw that tweet. How much credit does President Obama deserve?
Art Laffer: President Obama is a fine man, but he’s not an economist. He did inherit at a very, very bad economy and he was able to take from the trough a very slow growth pack, the slowest recovery in US history. But he did bring it back. It did come, but what’s really happened is Donald Trump is an economist. He really understands the economy far better than President Obama did, and you’ve seen the continuation in the surge of this economy that is second-to-none. Obama has not caused the Trump economy, let me just put it that way very simply. Trump has caused the Trump economy and deserves all the credit for it. His policies are right on mark, and he’s done a great job, and they really are his policies. President Trump understands the economy, Obama didn’t, and I don’t think Obama was well-served by his economic advisers during his eight years in office.
Stuart Varney: Are we at this moment the best game in town and I’m referring now to the economy of the United States. It seems to me that China, Europe, Japan are all reeling, either from their own policies or from tax increases or from the virus and where not. What do you say?
Art Laffer: Yeah, I think that’s very true. I mean. of all the major countries. there may be some little something somewhere like merania or something. But this economy is doing a really, really well for a large economy, it’s run exceptionally competently, and President Trump deserves all the credit for this. I mean, he has great advisors as well. Larry Kudlow, as you know, and Steve Mnuchin, are just phenomenal advisors. They understand the economy and they fit just perfectly with President Trump, making it just a win, win, win, win for everyone. Trade is come through, tax cuts, deregulation, it’s all there.
Stuart Varney: Okay, now that’s the economy. Look at the market since President Trump’s election. All of the indicators, whether its the Dow, the S&P or the NASDAQ, their on the screen now. The DOWs up 59%, the S&P is up 57%, the NASDAQ’s up a whopping 86% since the 2016 election. So again, you’re laughing, but look, in terms of stock market performance, we are still the best game in town.
Art Laffer: I know, it is amazing. You know, after 7 years of a recovery, a very tepid recovery is I mentioned, under Obama, it was the slowest recovery in US history. But they’re, after 7 years in recovery, all of a sudden you get this boom in the stock market, which is incredible. You get the growth of the US staying at very high rates. You get tax revenues coming in nicely. You keep inflation under control. What’s more to ask, this is the, this is the Goldilocks economy, if I’ve ever seen one. And it’s because President Trump understand economics. We’re getting the trade deals, were getting all of this stuff way late in the recovery,so its the longest recovering in US history. Its all because of Trump. Its all because of Trump.
Stuart Varney: This is more ammunition for you. A new Gallup poll says most people say they are better off now than they were four years ago. Does that remind you of anyone in your, in your past?
Art Laffer: Oh it does, I remember when the president are you better off than you were four years ago with Jimmy Carter, and of course everyone knew the answer. And then he did it again in ’84. I was on the executive committee of the Reagan-Bush finance committee back then, and on his Economic Policy Advisory board, when he said, aren’t you better off, and of course everyone knew, yeah we are, we’re much better off. And the same thing is true with Trump, I mean, with Trump were much better off than we were. I think that’s 61%, Stewart, has the highest, right in there along with John F Kennedy and Ronald Reagan, right at the very tippy-top, of of the performance of that Gallup poll, and it’s just amazing and it’s really true. Trump really knows how to do economics and he’s done a great job.
Stuart Varney: Okay, last question real fast. If any of the front-running Democrats or any of the Democrats who are in the race, if any of them won, would we still grow the economy?
Art Laffer: Not if, not if they carried out their promises, we wouldn’t, we’d have a terrible crash. The thing that shocks me, Stuart, and if I can be very honest with you. As you know I’ve been a Democrat or Republican over the years. I’m really just economics. I’m at Kennedy Democrat. I voted for Clinton twice. The Democrats don’t have to do this suicide economic march. They don’t. It’s not part of their DNA, it’s not part of their history. But all of them have decided that they’re going to hate everything that Trump and therefore the go against this wonderful economy, which I don’t have to do. If one of those Democrats decided to be a pro-growth Democratic like Kennedy or like Bill Clinton or like some of these others, they can sweep the field, but no no no that got to hate Trump on it every single line, including the very wonderful job he’s done on the economy and he’s spectacular and they’re all saying it’s awful, which is just stupid on the face of it.
Stuart Varney: Okay, I have no, nothing further to add. Art Laffer, thank you very much indeed sir.
Art Laffer: Well thank you, Stuart. Isn’t it wonderful.