Arthur Laffer, an ex-top economic advisor to President Reagan and a former economic adviser for Trump’s 2016 presidential campaign, confirmed that Americans are right to feel pessimistic about the current financial situation because they do not care about “unemployment rates” but jobs.
What people care about
Latest polls claim that half of Americans feel that the economy is in a poor state. Despite avoiding recession and flattening the unemployment rate, Laffer explained to Fox Business, “Let me just give you where the huge disconnect comes here. People care about jobs, not unemployment rates, and so when you look at total jobs, it’s way down.”
The prices worry people, not inflation
“The second thing that’s really important is people worry about prices, not inflation … even though the inflation rate is down quite substantially, the prices are not down at all, and it’s prices that are killing people, so they obviously are upset,” the economist elaborated.
Gross domestic product
“The last thing is GDP growth this last quarter was almost 5%, which is a very nice number, except GDP is what’s really low. It’s not kept track with what happened after Trump left office,” Laffer continued. He argues that this gap in GDP growth is a crucial indicator of the economy’s underperformance.\
Output
“It’s not caught back up yet at all, and they are not looking at growth rates. People look at output, not at output growth,” Laffer added.
High mortgage rate
The host pondered over high mortgage rates, to which Laffer said, “That’s what people feel and know and what is reported, especially on other channels, by the way, but here too, what is reported is not really what people care about.”
Laffer previously advised Biden
The economist talked to Fox News Digital during the past summer, “Joe Biden needs to rely on basic common sense, and he knows it very well. Lower tax rates, broaden the tax base, sound money, minimal regulations, free trade, spending restraint, and then get the hell out of the way and let the economy solve itself.”
The economist praised Biden’s past work
In the same interview, Laffer reminded the audience of Biden’s past achievements, including that he “was one of the people who voted for the ’86 Tax Act.”
Clinton, almost like Raegan
Laffer, awarded the Presidential Medal of Freedom by President Donald Trump, also shared that he voted for Clinton because he “cut government spending as a share of GDP more than the next three peacetime presidents combined.” He praised Clinton and said he made a few mistakes, like Raegan.
Laffer criticized Bidenomics
The economist said, “Bidenomics is changing the economy but in the wrong way.” Laffer recently noted, “There is a disconnect in how people report the news as being low inflation, low unemployment, and very high GDP growth.”
Feeling blue
“No one cares about those, they care about the levels of this. So, that is why people are feeling bad. They will continue to feel bad for quite some time to come, and they are correct,” the economist concluded.
Laffer offered advice to House Republicans
Laffer and Tarren Bragdon, CEO of the Foundation for Government Accountability, gave Republicans three steps to kickstart the economy in an op-ed for Fox Business. Their solution: “It’s time to bring back the best parts of the Limit, Save, Grow Act.”
Universal support
The writers shared how “spending caps, work requirements, and the REINS Act” are universally supported by all conservatives, adding, “Republicans should instead unite around the commonsense conservative reforms they already support – and Americans need.”
More from AllThingsFinance: Court Finally Unseals Secretive Case of Jan 6 Offender
Samuel Lazar sentenced for Jan. 6 insurrection; previously confidential case now revealed: Court Finally Unseals Secretive Case of Jan 6 Offender
Jack Smith continues pushing Judge Cannon, reminding her that “the speedy trial clock” is ticking
Jack Smith urges Judge Aileen Cannon for a speedy trial in a classified documents case involving ex-President Trump: Jack Smith continues pushing Judge Cannon, reminding her that “the speedy trial clock” is ticking
Defamation lawsuit against Kari Lake advances while people compare her to Rudy Giuliani
Kari Lake loses First Amendment right to accuse Maricopa County recorder; Arizona Republic ponders if she’s channeling Rudy Giuliani in her sleep : Defamation lawsuit against Kari Lake advances while people compare her to Rudy Giuliani
More Democrats are flipping in a crucial swing state than Republicans
In Pennsylvania, a significant number of registered Democrats flipping is sending an unflattering signal to President Biden: More Democrats are flipping in a crucial swing state than Republicans
