Art Laffer: ‘Whole Economy is Shrinking,’ Newsmax reports:
Economist Art Laffer Wednesday called the contraction in the U.S. economy “catastrophic” and predicted that it would continue to shrink without spending restraints and lower business tax rates.
“You have the whole output of the economy shrinking. Not just expanding more slowly, it`s absolutely shrinking,” Laffer told Fox News’ Eric Bolling Wednesday.
“That’s catastrophic,” the former adviser to President Ronald Reagan added.
“You can explain some of that by sequestration, and defense spending was down lot and all that. But you still have a rotten economy. And it’s still too bad. We know how to fix it, by the way, a low rate flat tax, spending restraint, sound money, free trade.”
But why, when the end result produces the “‘Best-Looking Contraction in U.S. GDP You’ll Ever See’”?