You may remember the name Art Laffer. He's famous for the Laffer curve, one of the foundations of supply-side economics. Laffer is one of the main perpetrators of the idea that cutting tax rates will increase the revenue the government receives. You know, kinda like how when you decrease the money you make, your bank account magically goes up. This was correctly called "voodoo economics" by the first President Bush. Art Laffer is an idiot.
Well, now an interview he gave on CNBC in August, 2006 has emerged as a reminder of how little Art Laffer, John McCain, Ronald Reagan, and Republicans in general know about the economy.
In the interview, economist Peter Schiff predicts the current recession, brought on by the bad debts being taken on by banks and consumers, our wealth heading overseas to China and India, the decline of the dollar, our national negative savings rate, and the sub-prime mortgage fiasco. He's eerily prescient in predicting our current crisis-he even nails the skyrocketing prices of gas and gold.
Keep in mind, this was back in mid-2006, when the housing bubble was still active and the Republicans still wanted to take credit for the economy.
He is later joined by Mr. Laffter, who tries to do his best Sean Hannity impression by immediately insulting Schiff, and spouting off about how bulletproof the economy is. Some of my favorite quotes:
-"The United States economy has never been in better shape!"
-"Monetary policy is spectacular!"
-"This economy...is working beautifully!"
-To Schiff: "I've never heard so many mistakes!"
-"The average American income has gone up!" (This is true, but only because so many rich people have done so well. Most incomes have stagnated.)
Friends, the irresponsibility of conservativism is crashing down around the people that have beaten its drum for 30 years. The time has come to drive a stake in the heart of the Republican "free lunches for everyone" philosophy, the philosophy Barack Obama is attacking, the philosophy John McCain still believes in wholeheartedly. Enjoy.