Supply Side is Back: What it Means for Stocks and the Dollar
“The government doesn’t create resources, it distributes them.” –Art Laffer
This week, I met up with the Four Horsemen of the Supply Side Revolution — Steve Forbes, Larry Kudlow, Art Laffer and Steve Moore — at a private event sponsored by the Committee to Unleash the Economy. All four supply-siders are officially or informally advising Donald Trump on what policies his administration should pursue to get the economy growing again.
Larry Kudlow, Mark Skousen and Steve Moore at a Council for National Policy meeting.
Maria Bartiromo, of Fox Business, moderated a discussion on the impact Donald Trump would have on the economy and the markets.
She asked what top priority Trump should favor to get the economy going again, given that under eight years of Obama the U.S. economy never grew more than 3% — the worst performance since the Great Depression. Steve Moore noted that business investment has not increased in 16 years. The supply-siders agreed that higher taxes and more regulation (Obamacare, Dodd-Frank) held back the recovery.
According to the four economists, the #1 priority should be to cut the corporate tax rate from 35% to 15%. That more than anything would make the United States a tax haven for American corporations, and would bring back trillions to our shores, creating more jobs and more revenue for the government. The 15% corporate tax rate would also benefit small business, the backbone of the U.S. economy. Trump told Steve Moore directly that, more than anything, he wants to help small businesses, not the fat cats of Wall Street.
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