Bob Murphy Show Ep. 458 Unpacking Arthur Laffer’s Economic History
Oct 31, 2025
Adam Haman, an economist who formerly worked with Arthur Laffer, dives into significant economic themes shaped by Laffer's insights. They explore Laffer’s advocacy for private over government money and discuss the historical function of U.S. currency pre-Federal Reserve. The conversation touches on the effectiveness of the classical gold standard versus floating exchange rates. Haman and Bob analyze Laffer’s empirical findings on government spending's negative impact on private output, and they humorously speculate on the future of economic policies in a shifting political landscape.
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Private Money Over Government Monopoly
- Arthur Laffer argues government should not run money and preferred private money over Federal Reserve control.
- He ties monetary monopoly to long-run inflation and devaluation since the Fed's creation in 1913.
Working With Laffer: Courtesy And Pragmatism
- Bob Murphy recalls working for Laffer and notes Laffer's recent stronger public rhetoric against the Fed compared to his past courtesy.
- He found Laffer supportive of pragmatic policies, like a carbon tax if revenues reduced income taxes.
Classical Gold Provided Monetary Stability
- Laffer defends fixed exchange rates and the classical gold standard as having delivered global monetary stability pre-World War I.
- He criticizes floating rates post-1913 and praises Reagan and Volcker for hard-money instincts.
