Editing Arthur Laffer

{{Short description|American economist (born 1940)}}
{{Use mdy dates|date=May 2020}}
{{Infobox economist
|name             = Arthur Laffer
|image            = Arthur Laffer 2019.jpg
|caption          = Laffer at the [[White House]] in 2019
|birth_name       = Arthur Betz Laffer
|birth_date       = {{birth date and age|1940|08|14}}
|birth_place      = [[Youngstown, Ohio]], U.S.
|death_date       = 
|death_place      = 
|relatives        = [[Jonathan Lindsey]] (son-in-law)
|field            = [[Political economics]]
|school_tradition = [[Supply-side economics]]
|doctoral_advisor = [[Ronald McKinnon (economist)|Ronald McKinnon]]
|contributions    = [[Laffer curve]]
|awards           = [[Presidential Medal of Freedom]] (2019)
|education        = [[Yale University]] ([[Bachelor of Arts|BA]])<br />[[Stanford University]] ([[Master of Business Administration|MBA]], [[Doctor of Philosophy|PhD]])
}}
'''Arthur Betz Laffer''' ({{IPAc-en|ˈ|l|æ|f|ər}};<ref>{{cite web |url=http://dictionary.reference.com/browse/laffer+curve |title=Laffer curve &#124; Define Laffer curve at Dictionary.com |publisher=Dictionary.reference.com |access-date=December 13, 2012 |archive-date=October 25, 2012 |archive-url=https://web.archive.org/web/20121025110811/http://dictionary.reference.com/browse/laffer+curve |url-status=live }}</ref> born August 14, 1940) is an American [[Economics|economist]] and author who first gained prominence during the [[Presidency of Ronald Reagan|Reagan administration]] as a member of Reagan's Economic Policy Advisory Board (1981–1989). Laffer is best known for the [[Laffer curve]], an illustration of the theory that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for government. In certain circumstances, this would allow governments to cut taxes, and simultaneously increase revenue and economic growth.

Laffer was an economic advisor to [[Donald Trump]]'s 2016 presidential campaign.<ref name="Advisors to Trump">{{citation |title=Advisors to Trump |date=May 15, 2017 |url=http://www.politico.com/story/2017/05/15/donald-trump-fake-news-238379 |access-date=May 15, 2017 |archive-date=May 15, 2017 |archive-url=https://web.archive.org/web/20170515112731/http://www.politico.com/story/2017/05/15/donald-trump-fake-news-238379 |url-status=live }}</ref> In 2019, President Trump awarded Laffer with the [[Presidential Medal of Freedom]] for his contributions in the field of economics.<ref name=":5">{{Cite web|url=https://trumpwhitehouse.archives.gov/briefings-statements/president-donald-j-trump-award-medal-freedom/|title=President Donald J. Trump to Award the Medal of Freedom|website=The White House|language=en-US|access-date=June 20, 2019|archive-date=January 20, 2021|archive-url=https://web.archive.org/web/20210120201840/https://trumpwhitehouse.archives.gov/briefings-statements/president-donald-j-trump-award-medal-freedom/|url-status=live}}</ref>

==Early life and education==

Laffer was born in [[Youngstown, Ohio]], the son of Marian Amelia "Molly" (née Betz), a homemaker and politician, and William Gillespie Laffer, president of the [[Clevite|Clevite Corporation]]. He was raised in the [[Cleveland, Ohio]] area.<ref>{{cite book |url=https://books.google.com/books?id=Q98jAQAAIAAJ&q=molly+betz+laffer |title=Who's who in California – Alice Catt Armstrong – Google Books |access-date=December 13, 2012 |year=1994 |last1=Armstrong |first1=Alice Catt |publisher=Who's Who Historical Society |isbn=9781880142059 |archive-date=January 19, 2023 |archive-url=https://web.archive.org/web/20230119194637/https://books.google.com/books?id=Q98jAQAAIAAJ&q=molly+betz+laffer |url-status=live }}</ref><ref>{{cite web |url=http://www.laufferproductions.com/Surnames/3/2390.htm |title=Betz, Marian Amelia (Molly) |publisher=Laufferproductions.com |access-date=December 13, 2012 |archive-date=April 2, 2012 |archive-url=https://web.archive.org/web/20120402050806/http://www.laufferproductions.com/Surnames/3/2390.htm |url-status=live }}</ref><ref>{{cite news | url=https://www.nytimes.com/1982/09/05/style/arthur-laffer-fiance-of-traci-hickman.html | work=[[The New York Times]] | title=Arthur Laffer Fiance Of Traci Hickman | date=September 5, 1982 | access-date=February 5, 2017 | archive-date=August 21, 2017 | archive-url=https://web.archive.org/web/20170821090431/http://www.nytimes.com/1982/09/05/style/arthur-laffer-fiance-of-traci-hickman.html | url-status=live }}</ref> He is a Presbyterian,<ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-1985-03-22-mn-29732-story.html | work=[[Los Angeles Times]] | first=Victor F. | last=Zonana | title=Eyeing Senate Seat : Economist Laffer: Life in Fast Lane | date=March 22, 1985 | access-date=February 18, 2020 | archive-date=April 27, 2016 | archive-url=https://web.archive.org/web/20160427225238/http://articles.latimes.com/1985-03-22/news/mn-29732_1_laffer-curve | url-status=live }}</ref> and was graduated from Cleveland's [[University School]] high school in 1958.<ref>{{cite journal|journal=University School Alumni Journal|date=May 2018|page=Back Cover|title=It's the Economy}}</ref> Laffer earned a [[Bachelor of Arts|B.A.]] in economics from [[Yale University]] (1963) and an [[Master of Business Administration|M.B.A.]] (1965) and a [[Doctor of Philosophy|Ph.D.]] in economics (1972) from [[Stanford University]].<ref>{{Cite web|url=https://www.cnbc.com/2011/09/22/the-laffer-curve-cnbc-explains.html|title=The Laffer Curve: CNBC Explains|last=Koba|first=Mark|date=September 22, 2011|website=[[CNBC]]|access-date=January 28, 2019|archive-date=January 29, 2019|archive-url=https://web.archive.org/web/20190129064256/https://www.cnbc.com/id/44489779|url-status=live}}</ref>

== Academia ==

Laffer was an associate professor of Business Economics at the [[University of Chicago]] from 1970 to 1976 and a member of the Chicago faculty from 1967 through 1976.<ref name=":0">{{Cite news|url=https://www.washingtonpost.com/business/economy/arthur-laffer-has-a-neverending-supply-of-supply-side-plans-for-gop/2015/04/09/04c61440-dec1-11e4-a1b8-2ed88bc190d2_story.html|title=Arthur Laffer has a never-ending supply of supply-side plans for GOP|last=Tankersley|first=Jim|newspaper=[[The Washington Post]] |date=April 9, 2015|access-date=January 28, 2019|archive-date=February 13, 2019|archive-url=https://web.archive.org/web/20190213155147/https://www.washingtonpost.com/business/economy/arthur-laffer-has-a-neverending-supply-of-supply-side-plans-for-gop/2015/04/09/04c61440-dec1-11e4-a1b8-2ed88bc190d2_story.html|url-status=live}}</ref> From 1976 to 1984 Laffer held the status as the Charles B. Thornton Professor of Business Economics at the [[University of Southern California]] School of Business.<ref name=":4">{{Cite web|url=https://foxbusiness.com/person/l/art-laffer|title=FBN TV Personalities|website=Fox Business|language=en-US|access-date=January 28, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094218/https://www.foxbusiness.com/person/l/art-laffer|url-status=live}}</ref> During this time Laffer helped pass [[1978 California Proposition 13|Proposition 13]], the California initiative that drastically cut property taxes in the state in 1978.<ref>{{Cite web|url=https://people.com/archive/arthur-laffer-is-a-man-with-all-the-reasons-for-a-big-tax-cut-vol-11-no-14/|title=Arthur Laffer Is a Man with All the Reasons for a Big Tax Cut|website=PEOPLE.com|language=en|access-date=January 28, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094217/https://people.com/archive/arthur-laffer-is-a-man-with-all-the-reasons-for-a-big-tax-cut-vol-11-no-14/|url-status=live}}</ref> In the mid-1980s, Laffer was the Distinguished University Professor at [[Pepperdine University]] in [[Malibu, California|Malibu]], and a member of the Pepperdine University Board of Directors.<ref name=":1">{{Cite web|url=https://evidence.care/team/arthur-b-laffer-phd/|title=Arthur B. Laffer, PhD|website=Evidence Care|language=en-US|access-date=January 28, 2019|archive-date=July 29, 2021|archive-url=https://web.archive.org/web/20210729012953/https://evidence.care/team/arthur-b-laffer-phd/|url-status=dead}}</ref>

== Politics ==

Laffer was the first to hold the title of Chief Economist at the [[Office of Management and Budget]] (OMB) under [[George Shultz]] from October 1970 to July 1972.<ref name=":1" /> During the years 1972 to 1977, Laffer was a consultant to [[United States Secretary of the Treasury|Secretary of the Treasury]] [[William E. Simon|William Simon]], [[United States Secretary of Defense|Secretary of Defense]] [[Donald Rumsfeld]] and [[United States Secretary of the Treasury|Secretary of the Treasury]] [[George P. Shultz|George Shultz]].<ref name="auto">{{Cite web|url=https://www.businesswire.com/news/home/20150512006795/en/NexPoint-Residential-Trust-Appoints-Arthur-Laffer-James|title=NexPoint Residential Trust, Inc. Appoints Arthur Laffer and James Dondero to Board of Directors|date=May 12, 2015|website=www.businesswire.com|language=en|access-date=January 28, 2019|archive-date=May 29, 2022|archive-url=https://web.archive.org/web/20220529054829/https://www.businesswire.com/news/home/20150512006795/en/NexPoint-Residential-Trust-Appoints-Arthur-Laffer-James|url-status=live}}</ref>

Laffer was a member of [[Ronald Reagan|President Reagan]]'s Economic Policy Advisory Board for both of his terms (1981–1989) and was a founding member of the Reagan Executive Advisory Committee for the presidential race of 1980.<ref>{{Cite web|url=https://aeispeakers.com/speakers/arthur-laffer/|title=Arthur Laffer Speaker Pricing & Availability from AEI Speakers Bureau|website=AEI Speakers Bureau|language=en-US|access-date=January 28, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094218/https://aeispeakers.com/speakers/arthur-laffer/|url-status=live}}</ref> Laffer served as a member of the executive committee of the Reagan/Bush Finance Committee in 1984.<ref name=":1" />

In 1986, Laffer was a candidate for the [[Republican Party (United States)|Republican]] nomination for the [[United States Senate|U.S. Senate]]—which he lost in the [[California]] [[Partisan primary|primary]] to [[United States Congress|U.S. Congressman]] [[Ed Zschau]], who lost in the [[general election]] to the incumbent, [[Democratic Party (United States)|Democrat]] [[Alan Cranston]].<ref name="auto1">{{Cite web|url=https://www.britannica.com/biography/Arthur-B-Laffer|title=Arthur B. Laffer {{!}} American economist|website=Encyclopedia Britannica|language=en|access-date=January 28, 2019|archive-date=June 18, 2019|archive-url=https://web.archive.org/web/20190618203439/https://www.britannica.com/biography/Arthur-B-Laffer|url-status=live}}</ref> Laffer identifies himself as a staunch fiscal conservative. However, he has stated publicly that he voted for President [[Bill Clinton]] in 1992 and 1996.<ref>{{cite web |url=http://yale1962.org/speakout/?p=41 |title=Up, Up and Away: The Art Laffer Interview « Yale62.org |publisher=Yale1962.org |access-date=December 13, 2012 |archive-date=November 20, 2016 |archive-url=https://web.archive.org/web/20161120004924/http://yale1962.org/speakout/?p=41 |url-status=live }}</ref> Laffer references President Clinton's conservative fiscal and unregulated market policies as cornerstones of his support.<ref>Arthur B. Laffer and Stephen Moore, ''Return to Prosperity'', [[Threshold Editions]], p. 26, Feb 2010</ref>

In 2018, Laffer wrote the book ''Trumponomics'' with conservative economic commentator [[Stephen Moore (writer)|Stephen Moore]], wherein they lauded the Trump administration's economic policies.<ref name=":02">{{Cite news|url=https://www.foreignaffairs.com/reviews/review-essay/2018-12-11/snake-oil-economics|title=Snake-Oil Economics|journal=Foreign Affairs: America and the World|date=January 29, 2019|access-date=March 23, 2019|issue=January/February 2019|language=en-US|issn=0015-7120|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094221/https://www.foreignaffairs.com/reviews/review-essay/2018-12-11/snake-oil-economics|url-status=live}}</ref> In the book, Moore and Laffer argue that the Trump administration's 2017 tax plan would raise growth rates to as much as 6% and not increase budget deficits.<ref name=":02" /> In a 2019 review of the book, [[Greg Mankiw]], a conservative economics professor at Harvard University, characterized Laffer and Moore as "rah-rah partisans" who "do not build their analysis on the foundation of professional consensus or serious studies from peer-reviewed journals...The Laffer curve is undeniable as a matter of economic theory. There is certainly some level of taxation at which cutting tax rates would be win-win. But few economists believe that tax rates in the United States have reached such heights in recent years; to the contrary, they are likely below the revenue-maximizing level."<ref name=":02" /><ref>{{Cite web|url=https://scholar.harvard.edu/files/mankiw/files/snake-oil_economics.pdf|archiveurl=https://web.archive.org/web/20210710001845/https://scholar.harvard.edu/files/mankiw/files/snake-oil_economics.pdf|url-status=live|title=Snake oil economics|archivedate=July 10, 2021}}</ref> The one issue where Moore and Laffer disagree with Trump is on the issue of free trade, which the duo supports.<ref name=":02" /> Previously, in 2016, Laffer said that he believed that then-candidate Trump was "going to be okay on trade" and lauded Trump's understanding of trade.<ref>{{Cite web|url=https://thehill.com/policy/finance/trade/284253-economist-defends-trump-on-trade|title=Economist Laffer defends Trump on trade|last=Jagoda|first=Naomi|date=June 21, 2016|website=[[The Hill (newspaper)|The Hill]]|language=en|access-date=April 17, 2019|archive-date=April 17, 2019|archive-url=https://web.archive.org/web/20190417184923/https://thehill.com/policy/finance/trade/284253-economist-defends-trump-on-trade|url-status=live}}</ref><ref name="cbsnews.com">{{Cite web|url=https://www.cbsnews.com/news/trump-to-award-medal-of-freedom-to-tax-cut-guru-arthur-laffer/|title=Trump to award Medal of Freedom to tax-cut guru Arthur Laffer|website=www.cbsnews.com|language=en-US|access-date=May 31, 2019|archive-date=June 9, 2019|archive-url=https://web.archive.org/web/20190609175053/https://www.cbsnews.com/news/trump-to-award-medal-of-freedom-to-tax-cut-guru-arthur-laffer/|url-status=live}}</ref>

Laffer regularly writes opinion articles in ''[[The Wall Street Journal]]'' and ''[[The Washington Times]]''.<ref>{{cite news|last=Laffer|first=Arthur|date=October 19, 2011|title=Cain's Stimulating '9-9-9' Tax Reform|newspaper=[[The Wall Street Journal]]|url=https://www.wsj.com/articles/SB10001424052970204346104576637310315367804|access-date=November 14, 2011|archive-date=April 4, 2020|archive-url=https://web.archive.org/web/20200404201207/http://online.wsj.com/news/articles/SB10001424052970204346104576637310315367804?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052970204346104576637310315367804.html|url-status=live}}</ref><ref>{{cite news|title=STEPHEN MOORE: What the economy needs now|url=http://www.washingtontimes.com/news/2016/jan/24/stephen-moore-what-the-economy-needs-now/?page=all|newspaper=The Washington Times|access-date=June 6, 2016|archive-date=February 1, 2016|archive-url=https://web.archive.org/web/20160201112620/http://www.washingtontimes.com/news/2016/jan/24/stephen-moore-what-the-economy-needs-now/?page=all|url-status=live}}</ref>

On April 15, 2019, Laffer blamed the [[Great Recession]] on [[Barack Obama]], "who I believe was the reason why we had the Great Recession. As he got closer and closer to winning the markets collapsed."<ref>{{cite web|url=https://www.mediamatters.org/video/2019/04/15/fox-straight-news-guest-art-laffer-says-bernie-sanders-being-elected-president-would-cause-total/223452|title=Fox "straight news" guest says Bernie Sanders being elected president would cause a total market collapse|date=April 15, 2019|website=Media Matters for America|access-date=April 16, 2019|archive-date=July 31, 2019|archive-url=https://web.archive.org/web/20190731053602/https://www.mediamatters.org/video/2019/04/15/fox-straight-news-guest-art-laffer-says-bernie-sanders-being-elected-president-would-cause-total/223452|url-status=live}}</ref>

In 2020, Laffer advised the Trump administration on how to re-open the economy during the [[COVID-19 pandemic]].<ref>{{Cite news|date=2020-05-02|title=Conservative groups advising White House push fast reopening, not testing|language=en|work=[[Reuters]]|url=https://www.reuters.com/article/us-health-coronavirus-usa-plans-analysis-idUSKBN22D6BD|access-date=2020-05-21|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094216/https://www.reuters.com/article/us-health-coronavirus-usa-plans-analysis-idUSKBN22D6BD|url-status=live}}</ref><ref>{{Cite news|last=|first=|date=2020|title=34 days of pandemic: Inside Trump's desperate attempts to reopen America|newspaper=[[The Washington Post]]|url=https://www.washingtonpost.com/politics/34-days-of-pandemic-inside-trumps-desperate-attempts-to-reopen-america/2020/05/02/e99911f4-8b54-11ea-9dfd-990f9dcc71fc_story.html|access-date=|archive-date=August 30, 2021|archive-url=https://web.archive.org/web/20210830161113/https://www.washingtonpost.com/politics/34-days-of-pandemic-inside-trumps-desperate-attempts-to-reopen-america/2020/05/02/e99911f4-8b54-11ea-9dfd-990f9dcc71fc_story.html|url-status=live}}</ref><ref>{{Cite web|title=Reopening the economy vs. keeping it shut longer. What's more costly?|url=https://www.latimes.com/politics/story/2020-04-23/whats-worse-reopening-the-economy-or-keep-it-shut-down-longer|date=2020-04-23|website=[[Los Angeles Times]]|language=en-US|access-date=2020-05-21|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094215/https://www.latimes.com/politics/story/2020-04-23/whats-worse-reopening-the-economy-or-keep-it-shut-down-longer|url-status=live}}</ref> Laffer argued for halting [[Stimulus (economics)|stimulus]], calling instead for payroll tax cuts.<ref>{{Cite news|agency=Reuters|date=2020-05-01|title=Conservative Groups Advising White House Push Fast Reopening, Not Testing|language=en-US|work=[[The New York Times]]|url=https://www.nytimes.com/reuters/2020/05/01/us/01reuters-health-coronavirus-usa-plans-analysis.html|access-date=2020-05-14|issn=0362-4331}}</ref><ref name="FormerReagan">{{Cite web|title=A former Reagan economist wants to slash the salaries of professors and public officials — while simultaneously proposing tax cuts to stimulate the coronavirus-stricken economy|url=https://www.businessinsider.com/reagan-economist-arthur-laffer-tax-cuts-stimulate-coronavirus-trump-economy-2020-4|last=Zeballos-Roig|first=Joseph|website=[[Business Insider]]|access-date=2020-05-21|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094216/https://www.businessinsider.com/reagan-economist-arthur-laffer-tax-cuts-stimulate-coronavirus-trump-economy-2020-4|url-status=live}}</ref> He advocated for taxes on non-profit organizations in education and the arts, as well as for salary reductions for professors and government officials.<ref name="FormerReagan" /> He argued against expansion of unemployment aid, arguing it discouraged people from working.<ref name="FormerReagan" />

=== Presidential Medal of Freedom ===
[[File:President Trump Presents the Medal of Freedom (48099861262).jpg|thumb|Laffer receives the Presidential Medal of Freedom from President Trump in 2019]]
In 2019, President [[Donald Trump|Trump]] awarded Laffer the [[Presidential Medal of Freedom]], the nation's highest civilian honor.<ref name=":5" /> The Trump White House said Laffer was receiving the award for "public service and contributions to economic policy that have helped spur prosperity for our Nation" and that Laffer was "one of the most influential economists in American history" due to popularizing the "[[Laffer curve|Laffer Curve]]."<ref name=":5" /> Trump praised Laffer for policies that he said brought "greater opportunity for all Americans."<ref>{{Cite news|last=Tankersley|first=Jim|date=June 19, 2019|title=Trump Awards Presidential Medal of Freedom to Arthur Laffer, Tax-Cut Guru|language=en-US|work=[[The New York Times]]|url=https://www.nytimes.com/2019/06/19/us/politics/arthur-laffer-medal-of-freedom.html|access-date=June 20, 2019|issn=0362-4331|archive-date=June 20, 2019|archive-url=https://web.archive.org/web/20190620001813/https://www.nytimes.com/2019/06/19/us/politics/arthur-laffer-medal-of-freedom.html|url-status=live}}</ref>

==Laffer curve==
{{Main|Laffer curve}}
[[File:Laffer curve.svg|thumb|upright=1.2|A basic representation of a Laffer curve, plotting government revenue (R) against the tax rate (t) and showing the maximum revenue at t*]]
Although Laffer does not claim to have invented the Laffer curve concept,<ref>{{Cite web|url=https://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future|archive-url=https://web.archive.org/web/20170207000153/http://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future|url-status=unfit|archive-date=February 7, 2017|title=The Laffer Curve: Past, Present, and Future|first=Arthur|last=Laffer|website=The Heritage Foundation|date=June 1, 2004}}</ref> it was popularized with policymakers following an afternoon meeting Laffer had with Nixon/Ford Administration officials [[Dick Cheney]] and [[Donald Rumsfeld]] in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument.<ref>{{cite web|url=http://www.polyconomics.com/gallery/Napkin003.jpg |archive-url=https://web.archive.org/web/20110503200219/http://www.polyconomics.com/gallery/Napkin003.jpg |archive-date=May 3, 2011 |title= To Donald Rumsfeld |publisher=Polyconomics.com |access-date=December 13, 2012}}</ref>  The term "Laffer curve" was coined by [[Jude Wanniski]], who was also present. The basic concept was not new; Laffer himself says he learned it from [[Ibn Khaldun]] and [[John Maynard Keynes]].<ref>{{cite web |url=https://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future |title=The Laffer Curve: Past, Present, and Future |publisher=Heritage.org |access-date=December 13, 2012 |archive-date=July 23, 2011 |archive-url=https://web.archive.org/web/20110723124419/http://www.heritage.org/Research/Reports/2004/06/The-Laffer-Curve-Past-Present-and-Future |url-status=unfit }}</ref>

The [[Laffer curve]] is an [[economic theory]] that shows the relationship between tax rates and the amount of tax revenue collected by governments. The Laffer Curve shows that there is a certain point between 0% and 100% where tax revenues are maximized. The curve suggests that starting from zero, an increase in tax rates will increase the government's tax revenue; after a certain point, however, continuing to increase tax rates will cause a decrease in tax revenue.<ref name="auto1"/> This decrease in tax revenue can be explained by decreased incentives for work, production, etc.<ref name=":2">{{Cite web|url=https://www.investopedia.com/terms/l/laffercurve.asp|title=Laffer Curve|last=Kenton|first=Will|website=Investopedia|access-date=January 28, 2019|archive-date=January 29, 2019|archive-url=https://web.archive.org/web/20190129064140/https://www.investopedia.com/terms/l/laffercurve.asp|url-status=live}}</ref> Laffer's postulate was that the tax rate that maximizes revenue was at a much lower level than previously believed: so low that current tax rates were above the level where revenue is maximized. While many [[economist]]s believe that government spending to stimulate demand for products should be the solution for a poorly performing economy, Laffer argues that heavy taxes and regulation impede production, and therefore, government revenue.<ref name=":2" />

Numerous leading economists have rejected the view that a tax rate cut of current federal [[Income tax in the United States|U.S. income taxes]] can lead to increased tax revenue. When asked in a 2012 [[University of Chicago Booth School of Business|University of Chicago business school]] survey whether a "cut in federal income tax rates in the US right now would raise taxable income enough so that the annual total tax revenue would be higher within five years than without the tax cut", none of the economists surveyed agreed and 71% disagreed.<ref>{{cite news |last1=Popp Berman |first1=Elizabeth |title=Trump is giving Arthur Laffer the Presidential Medal of Freedom. Economists aren't smiling |url=https://www.washingtonpost.com/politics/2019/06/01/trump-is-giving-arthur-laffer-presidential-medal-freedom-economists-arent-laughing/ |newspaper=[[The Washington Post]] |date=June 1, 2019 |access-date=July 7, 2021 |archive-date=February 6, 2021 |archive-url=https://web.archive.org/web/20210206133554/https://www.washingtonpost.com/politics/2019/06/01/trump-is-giving-arthur-laffer-presidential-medal-freedom-economists-arent-laughing/ |url-status=live }}</ref> According to [[Greg Mankiw]], most economists have been very skeptical of Laffer's contention that decreases in tax rates could increase tax revenue, at least in the United States. In his textbook, Mankiw states, "there was little evidence for Laffer's view that U.S. tax rates had in fact reached such extreme levels."<ref name="mankiw">{{cite book | title=Principles of Economics | publisher=Cengage | author=Mankiw, Greg | author-link=Greg Mankiw | year=2014 | pages=164–165}}</ref> Under the direction of conservative economist [[Douglas Holtz-Eakin]], the [[Congressional Budget Office]] conducted a 2005 study on the fiscal effects of a 10% cut in federal income tax rates, finding that it resulted in a significant net revenue loss.<ref>{{cite web|url=https://www.nytimes.com/2008/04/23/business/23leonhardt.html|title=Weighing a McCain Economist|first=David|last=Leonhardt|date=April 23, 2008|newspaper=[[The New York Times]]|access-date=April 18, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094218/https://www.nytimes.com/2008/04/23/business/23leonhardt.html|url-status=live}}</ref><ref>{{cite web|url=https://www.cbo.gov/sites/default/files/109th-congress-2005-2006/reports/12-01-10percenttaxcut.pdf |archive-url=https://web.archive.org/web/20221105062357/https://www.cbo.gov/sites/default/files/109th-congress-2005-2006/reports/12-01-10percenttaxcut.pdf |title=Analyzing the Economic and Budgetary Effects of a 10 Percent Cut in Income Tax Rates|date= December 1, 2005|archive-date= November 5, 2022|website=[[Congressional Budget Office]] }}</ref> Economist [[John Quiggin]] distinguishes between the Laffer curve and Laffer's analysis of tax rates, writing that the Laffer curve was "correct but unoriginal" and that Laffer's analysis that the United States was on the wrong side of the Laffer curve "was original but incorrect."<ref name=":3">{{Cite book|last=Quiggin|first=John|title=Zombie Economics|date=2012-05-21|publisher=Princeton University Press|isbn=978-1-4008-4208-7|pages=142|doi=10.2307/j.ctt7rg7m}}</ref>

Laffer was an economic adviser to Kansas Governor [[Sam Brownback]], who in 2012 zeroed out state tax liability for approximately 330,000 of the top wage earners in the state, called the [[Kansas experiment]], contending it would be a "shot of adrenaline into the heart of the Kansas economy."<ref>Topeka Capital Journal, 2013</ref><ref name=Gale>{{cite web|author=William G. Gale|url=https://www.taxpolicycenter.org/taxvox/what-congressional-tax-cutters-can-learn-kansas|title=What Congressional Tax Cutters Can Learn From Kansas|date=November 29, 2017|publisher=Tax Policy Center|access-date=April 16, 2019|archive-date=December 24, 2022|archive-url=https://web.archive.org/web/20221224003234/https://www.taxpolicycenter.org/taxvox/what-congressional-tax-cutters-can-learn-kansas|url-status=live}}</ref> Laffer was paid $75,000 to advise in the creation of Brownback's tax cut plan, and gave Brownback his full endorsement, stating that what Brownback was doing was "truly revolutionary"<ref>{{Cite journal|last=Alvord|first=Daniel R.|date=2020-03-01|title=What Matters to Kansas: Small Business and the Defeat of the Kansas Tax Experiment|journal=Politics & Society|language=en|volume=48|issue=1|pages=27–66|doi=10.1177/0032329219894788|issn=0032-3292|doi-access=free}}</ref> and would bring "enormous prosperity" to Kansas.<ref name=Gale/> The state, which had previously had a budget surplus, experienced a budget deficit of about $200 million in 2012. Drastic cuts to state funding for education and infrastructure were implemented to close budget deficits and the Kansas economy underperformed relative to neighboring states.<ref>Kansas City Star, 2015</ref> Brownback's tax overhaul was described in a June 2017 article in ''[[The Atlantic]]'' as the United States' "most aggressive experiment in conservative economic policy".<ref name="theatlantic_tax_experiment_dead_2017">{{cite news |work=[[The Atlantic]] |url=https://www.theatlantic.com/politics/archive/2017/06/kansass-conservative-tax-experiment-is-dead/529551/ |title=The Death of Kansas's Conservative Experiment |date=June 7, 2017 |access-date=June 7, 2017 |first=Russell |last=Berman |archive-date=June 12, 2017 |archive-url=https://web.archive.org/web/20170612210830/https://www.theatlantic.com/politics/archive/2017/06/kansass-conservative-tax-experiment-is-dead/529551/ |url-status=live }}</ref> The drastic tax cuts had "threatened the viability of schools and infrastructure" in Kansas. A supermajority of lawmakers in the Kansas legislature, both Democrats and Republicans, repealed the tax cut in June 2017, overriding Brownback's veto.<ref name="theatlantic_tax_experiment_dead_2017"/>

== Awards and recognition ==

Awards that Laffer has received for his economic work:

* 2 Graham and Dodd Awards from the Financial Analyst Federation for outstanding feature articles published in the ''[[Financial Analysts Journal]]''<ref name=":4"/>
* The Distinguished Service Award by the [[National Association of Investment Clubs]]<ref name=":4"/>
* The Daniel Webster Award for public speaking by the International Platform Association<ref name=":4"/>
* Distinguished University Professor of Economics from [[Mercer University]] in 2008<ref>{{Cite web|url=https://news.mercer.edu/080520professors/|title=Arthur Laffer and Horace Fleming Appointed Distinguished University Professors|date=May 20, 2008|website=Mercer News|language=en-US|access-date=January 28, 2019|archive-date=March 8, 2021|archive-url=https://web.archive.org/web/20210308162411/https://news.mercer.edu/080520professors/|url-status=live}}</ref>
* His book ''The End of Prosperity: How Higher Taxes Will Doom the Economy-If We Let it Happen'' was nominated for the F.A. Hayek Book Award in 2009<ref>{{Cite web|url=http://www.taxcoop-conference.com/speaker/laffer-arthur-b/?lang=en|archive-url=https://web.archive.org/web/20240227195952/http://www.taxcoop-conference.com/speaker/laffer-arthur-b/?lang=en|url-status=dead|archive-date=February 27, 2024|title=LAFFER, Arthur B.|website=TaxCOOP|language=en-US|access-date=January 28, 2019}}</ref>
* The Hayek Lifetime Achievement Award in 2016<ref>{{Cite web|url=https://medium.com/freemarketdiaries/arthur-laffer-2016-hayek-lifetime-achievement-award-recipient-3699d5065a27|title=Arthur Laffer: 2016 Hayek Lifetime Achievement Award Recipient|last=Fernández|first=Federico N.|date=December 6, 2016|website=Medium|access-date=January 28, 2019|archive-date=January 29, 2019|archive-url=https://web.archive.org/web/20190129122743/https://medium.com/freemarketdiaries/arthur-laffer-2016-hayek-lifetime-achievement-award-recipient-3699d5065a27|url-status=live}}</ref>
* In December 2017, Laffer became the first recipient of the [[American Legislative Exchange Council]]'s Laffer Award for Economic Excellence<ref>{{Cite web|url=https://www.alec.org/article/alec-honors-dr-arthur-laffer-for-economic-excellence/|title=ALEC Honors Dr. Arthur Laffer for Economic Excellence|website=www.alec.org|language=en-US|access-date=January 28, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094218/https://alec.org/article/alec-honors-dr-arthur-laffer-for-economic-excellence/|url-status=live}}</ref>
* Laffer was awarded the [[Presidential Medal of Freedom]] by President [[Donald Trump]] on June 19, 2019.<ref>{{cite news|title=Trump awards Presidential Medal of Freedom to economist Arthur Laffer|url=https://www.washingtonpost.com/politics/trump-to-award-presidential-medal-of-freedom-to-economist-art-laffer-today/2019/06/19/f1505826-9299-11e9-aadb-74e6b2b46f6a_story.html|date=June 19, 2019|newspaper=[[The Washington Post]]|access-date=June 20, 2019|archive-date=June 12, 2022|archive-url=https://web.archive.org/web/20220612070557/https://www.washingtonpost.com/politics/trump-to-award-presidential-medal-of-freedom-to-economist-art-laffer-today/2019/06/19/f1505826-9299-11e9-aadb-74e6b2b46f6a_story.html|url-status=live}}</ref>

Laffer has been widely acknowledged for his economic influence, including:

* Listed in "A Gallery of the Greatest People Who Influenced Our Daily Business," in ''The Wall Street Journal'' on June 23, 1989<ref name=":4"/>
* Included in "A Dozen Who Shaped the '80s," in the ''Los Angeles Times'' on January 1, 1990<ref name=":4"/>
* His creation of the Laffer Curve was deemed a "memorable event" in financial history by the ''[[Institutional Investor (magazine)|Institutional Investor]]'' in its July 1992 Silver Anniversary issue, "The Heroes, Villains, Triumphs, Failures, and Other Memorable Events."<ref name=":4"/>
* Noted in ''[[Time (magazine)|Time]]'' magazine's March 29, 1999 cover story, "A Century of Science" for "his supply-side economic theories, which hold that reducing federal taxes spurs economic growth and, eventually, increases federal revenues" <ref>{{citation|last1=Dorfman|first1=Andrea|last2=Hart|first2=Mary|url=https://content.time.com/time/subscriber/printout/0,8816,990633,00.html|title=A Century of Science|magazine=Time|date=March 29, 1999|volume=153|issue=12|access-date=May 1, 2020|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094218/https://content.time.com/time/subscriber/printout/0,8816,990633,00.html|url-status=live}}</ref>
* ''[[Bloomberg Businessweek]]'' selected the Laffer Curve as one of the "85 Most Disruptive Ideas In Our History" for its 85th anniversary issue in 2014.<ref>{{Cite web|url=https://www.bloomberg.com/businessweek/85ideas/|title=The 85 Most Disruptive Ideas In Our History|website=[[Bloomberg News]] |access-date=January 28, 2019|archive-date=March 27, 2022|archive-url=https://web.archive.org/web/20220327224211/https://www.bloomberg.com/businessweek/85ideas/|url-status=live}}</ref> Bloomberg produced a [https://www.youtube.com/watch?v=4yBgTN5JT-Y video] with Laffer, [[Dick Cheney]] and [[Donald Rumsfeld]] about the Laffer Curve and the "dinner napkin that changed the economy"<ref>{{Citation|last=Bloomberg|title=Dick Cheney, Donald Rumsfeld and Arthur Laffer on the Dinner Napkin that Changed the Economy|date=December 3, 2014 |url=https://www.youtube.com/watch?v=4yBgTN5JT-Y|access-date=January 28, 2019|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094216/https://www.youtube.com/watch?v=4yBgTN5JT-Y|url-status=live}}</ref>

==Publications==

The following is a partial list of publications written primarily by Laffer, with co-authors indicated, in order by date:
* “International Short-Term Capital Movements: Comments,” ''The American Economic Review'' '''57''' (3), pp.&nbsp;548–565 (1967)
*“The Economics of Cycles and Growth,” written by Stanley Bober, reviewed by Arthur Laffer, ''The American Economic Review'' '''58''' (4), pp.&nbsp;1006–1007 (1968)
*"The U.S. Balance of Payments – A Financial Center View," ''Law and Contemporary Problems'' '''34''' (1), pp.&nbsp;33–46 (1969).
* "Vertical Integration by Corporations, 1929–1965," ''Review of Economics and Statistics'' '''51''' (1), pp.&nbsp;91–93 (1969).
* "Trade Credit and the Money Market," ''J. Political Economy'' '''78''' (2), 239–267 (1970).
* "Information and Capital Markets", (with [[Eugene Fama]]). ''J. Business'' '''44''' (3), pp.&nbsp;289–298 (1971).
* "A Formal Model of the Economy," (with R. David Ranson). ''J. Business'' '''44''' (3), pp.&nbsp;247–270 (1971).
* "The Number of Firms and Competition", (with Eugene F. Fama). ''American Economic Review'' ''62'' (4), pp.&nbsp;670–674 (1972).
* "Monetary Policy and the Balance of Payments," ''J. Money, Credit, and Banking Part I'' '''4''' (1), 13–22 (1972).
* "Some Evidence on the Formation, Efficiency and Accuracy of Anticipations of Nominal Yields," (with Richard Zecher). ''J. Monetary Economics'' '''1''' (3), pp.&nbsp;327–342 (1975).
*''The Phenomenon of Worldwide Inflation'', co-edited with David Meiselman, [[American Enterprise Institute]], Washington, D.C., 1975.
*''The Economics of the Tax Revolt: A Reader,'' co-authored with Jan P. Seymour, Harcourt Brace Jovanovich, Inc., San Diego, 1976.
*''De Fiscus Onder Het Mes'', Uitgeverij Acropolis, Brussel/Amstelveen, 1981.
*''L’Ellipse ou la Loi des Rendements Fiscaux Decroissants,'' Institutum Europaeum, Brussels, 1981
*''Future American Energy Policy,'' co-authored with Meredith S. Crist, Lexington Books, Lexington, Massachusetts, 1982.
* "Reinstatement of the Dollar: The Blueprint," ''Economic Notes'' '''0''' (2), pp.&nbsp;158–176 (1982).
*Victor A. Canto, Douglas H. Joines, and Arthur B. Laffer, ''Foundations of Supply-Side Economics – Theory and Evidence'' (New York: Academic Press, 1982).
* "A High Road for the American Automobile Industry," ''World Economy'' '''8''' (3), pp.&nbsp;267–286 (1985).
* "The Ellipse: An Explication of the ''Laffer'' Curve in a Two-Factor Model," ''The Financial Analyst's Guide to Fiscal Policy'', pp.&nbsp;1–35 (New York: Greenwood Press, 1986).
* "Heightened foreign competition only route for American prosperity," ''The Journal Record'' (June 9, 1987).
* "America in the World Economy: A Strategy for the 1990s: Commentary," ''America's Global Interests: A New Agenda'', pp.&nbsp;122–125 (London: Norton, 1989).
*''Monetary Policy, Taxation, and International Investment Strategy,'' co-edited with Victor A. Canto, Quorum Books, Connecticut. 1990.
* "Either California's Housing Prices Are Going to Fall or California's in for One Helluva Rise in Personal Income," (with Christopher S. Hammond).  ''Investment Strategy and State and Local Economic Policy'', pp.&nbsp;49–64 (London: Quorum Books, 1992).
*''Investment Strategy and State and Local Economic Policy,'' co-authored with Victor A. Canto and Robert I. Webb, Quorum Books, Connecticut. 1992.
* "Trading Policy Outlook," ''Industrial Policy and International Trade'', pp.&nbsp;175–186, Volume 62 in ''Contemporary Studies in Economic and Financial Analysis'' (London: JAI Press, 1992).
* "The Reagan-Clinton Presidency," ''International Economy'' '''12''' (2), 22–24 (1998).
* "Bullish on Japan," (with Thomas J. Martin). ''American Spectator'' pp.&nbsp;28–30 (June 1, 2001).
* "{{unfit|1=[https://web.archive.org/web/20170207000153/http://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future The Laffer Curve: Past, Present, and Future]}}," ''Heritage Foundation Backgrounder'' #1765 (June 1, 2004).
*''Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index'', co-authored with Stephen Moore and Jonathan Williams, American Legislative Exchange Council, 1st Edition 2008, 2nd Edition 2009, 3rd Edition 2010, 4th Edition 2011, 5th Edition 2012, 6th Edition 2013, 7th Edition 2014, 8th Edition 2015, 9th Edition 2016, 10th Edition 2017.
* [https://web.archive.org/web/20110726163811/http://www.i2i.org/articles/Laffer.pdf "The Prognosis for National Health Insurance: A Colorado Perspective], ''[[Independence Institute]]'' (August 2009)
*{{cite book|author=(with Stephen Moore and Peter Tanous)|title=The End of Prosperity: How Higher Taxes Will Doom the Economy--If We Let It Happen|url=https://books.google.com/books?id=EU5gY-JY-mwC|date=September 8, 2009|publisher=Simon and Schuster|isbn=978-1-4165-9239-6}}
*''The Private Equity Edge: How Private Equity Players and the World’s Top Companies Build Value and Wealth'', co-authored with William J. Hass and Shepherd G. Pryor IV, McGraw-Hill, New York, 2009.
*''Return to Prosperity: How America Can Regain its Economic Superpower Status'', co-authored with Stephen Moore, Threshold Editions, New York, 2010.
*''Eureka!: How to Fix California,'' with Wayne Winegarden, Ph.D. Pacific Research Institute, San Francisco, 2012
*''An Inquiry into the Nature and Causes of the Wealth of States,'' co-authored with Stephen Moore, Rex A. Sinquefield, and Travis Brown, John Wiley and Sons, Inc., New Jersey, 2014. 
*''The Pillars of Reaganomics: A Generation of Wisdom from Arthur Laffer and the Supply-Side Revolutionaries'', edited by Brian Domitrovic, The Laffer Center at the Pacific Research Institute, San Francisco, 2014.
*''Handbook of Tobacco Taxation,'' The Laffer Center at the Pacific Research Institute, San Francisco, 2014.
*''Wealth of States: More Ways to Enhance Freedom, Opportunity and Growth,'' co-authored with Stephen Moore, Rex A. Sinquefield, and Travis Brown, 2017.
*''Trumponomics: Inside the America First Plan to Revive Our Economy''. (with Stephen Moore). All Points Books, 2018 {{ISBN|9781250193711}}
*''Taxes Have Consequences: An Income Tax History of the United States''. co-authored with Brian Domitrovic, Jeanne Cairns Sinquefield, Donald Trump (Foreword). Post Hill Press, 2022
* ''The Trump Economic Miracle,'' with [[Stephen Moore (writer)|Stephen Moore]] (Post Hill Press, 2024). The book is about restoring America's prosperity based on pro-business policy ideas,<ref>[https://posthillpress.com/book/the-trump-economic-miracle-and-the-plan-to-unleash-prosperity-again PostHill Press book review]</ref> arguing that [[Donald Trump]]'s pro-growth policies "fueled unprecedented growth and prosperity".<ref>[https://thetrumpeconomicmiracle.com/ official book website]</ref>

Laffer has written two children's books with Michelle A. Balconi: "Let’s Chat About Economics" (2014) and "Let’s Chat About Democracy" (2017).<ref>{{cite web|title=Let's Chat Books|url=https://www.letschatbooks.com/|access-date=November 22, 2017|archive-date=December 22, 2022|archive-url=https://web.archive.org/web/20221222094217/https://www.letschatbooks.com/|url-status=live}}</ref>

==See also==
* [[Supply-side economics]]
* [[Trickle-down economics]]

==References==

{{Reflist}}

== External links ==
* {{Commons category-inline}}
* {{Wikiquote-inline}}
* {{C-SPAN|18696}}
* [[Jude Wanniski]], "[https://web.archive.org/web/20060114075248/http://www.yorktownpatriot.com/printer_78.shtml Sketching the Laffer Curve]," ''The Yorktown Patriot'' (June 14, 2005)
{{Authority control}}

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