Bob Murphy Show Ep. 458 Unpacking Arthur Laffer’s Economic History
Oct 31, 2025
Adam Haman, an economist who formerly worked with Arthur Laffer, dives into significant economic themes shaped by Laffer's insights. They explore Laffer’s advocacy for private over government money and discuss the historical function of U.S. currency pre-Federal Reserve. The conversation touches on the effectiveness of the classical gold standard versus floating exchange rates. Haman and Bob analyze Laffer’s empirical findings on government spending's negative impact on private output, and they humorously speculate on the future of economic policies in a shifting political landscape.
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Working With Laffer: Courtesy And Pragmatism
- Bob Murphy recalls working for Laffer and notes Laffer's recent stronger public rhetoric against the Fed compared to his past courtesy.
- He found Laffer supportive of pragmatic policies, like a carbon tax if revenues reduced income taxes.
Fiscal Unity Makes A Currency Area Work
- Optimal currency areas require fiscal unity for a single currency to function well across regions.
- Laffer notes the euro struggles show political fragmentation undermines common-currency benefits.
Think Dynamically About Tax Cuts
- Consider tax-rate incentives: cutting very high marginal rates can sharply raise after-tax returns and activity.
- Evaluate tax changes dynamically, not by static revenue assumptions alone.
