Tom Bilyeu's Impact Theory

Arthur Laffer Breaks Down Reagan, Trump, and the True Drivers of Economic Growth

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Dec 16, 2025
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Arthur B. Laffer
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INSIGHT

How Reagan-Era Policy Sparked Rapid Growth

  • Tax cuts and monetary discipline triggered the 1983–84 U.S. growth surge that raised real GDP 12% in 18 months.
  • Arthur Laffer argues similar policy shifts can again produce large economic gains if fully implemented.
ANECDOTE

Reagan-Era Economic Rescue Recounted

  • Laffer recounts Reagan-era conditions: 21.5% prime rates, double-digit mortgage rates, 70% top income tax.
  • He describes policy moves (rate cuts, tax cuts, Volcker's stronger dollar) that transformed the economy.
INSIGHT

Better Metrics For Assessing National Debt

  • Evaluate national debt using net debt, debt-to-wealth, or debt-service-to-GDP rather than gross debt-to-GDP.
  • Laffer says those adjusted metrics make current U.S. liabilities concerning but not crisis-level catastrophic.
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