Art Laffer pretty much summed up the Government’s bailout of everyone from AIG to GM and Chrysler … they shouldn’t be in the business in the first place. It’s very funny.Laffer you may remember, is the supply sider who advised the Reagan administration on the economy. His theory led to the greatest peace time expansion of the economy the country had ever seen. Cutting taxes led to record government revenues. It was a win win until … well the government over spent.
Here’s Laffer on the stimulus (“It’s no stimulus at all.”) and on the bailouts of banks and insurance companies (Government cannot micro manage business … the more they do … the deeper they get). As I said, it’s funny and compelling.