Thoughtful Money with Adam Taggart Art Laffer: The Foundation Is Now Laid For An Economic "Golden Age"
Why The Trump Economic Agenda Lays the Groundwork for a New Golden Age
The foundation for a new era of sustained economic growth is firmly in place with the Trump administration's completion of key policies like the Tax Cuts and Jobs Act and border security measures.
Arthur Laffer explains that these laws lock in permanent tax rates and incentives, promote deregulation, and push for medical price transparency — all driving factors for robust GDP growth potentially hitting 4% to 5% for periods.
He emphasizes that growth will lead to lower unemployment, more people employed, and reduced welfare burdens. Furthermore, Laffer notes this environment encourages investment and work incentive, citing examples like no tax on overtime and expensing capital purchases.
Ultimately, Laffer is optimistic that we are transitioning from economic policy strategy to execution, setting the stage for a “big bounce” in prosperity and growth, similar to historical precedents but without the preceding recession.
Key quote: “The legislative agenda for this administration has been accomplished. It’s happened in the first six months and it’s going to got three and a half years to go.”
Key Economic Agenda Locked In
- The passing of the Big Beautiful Bill secures the Trump administration's key economic agenda permanently.
- Its provisions create a foundation for sustainable growth and economic stability.
Tax Cuts Can Boost Revenues
- Tax cuts can increase federal revenues by stimulating growth and reducing tax avoidance.
- Forecasts assuming tax cuts worsen deficits often overlook dynamic economic responses.
