Ali Velshi Interviews Arthur Laffer
Ali Velshi Interviews Arthur Laffer
Arthur Laffer lying to Ali Velshi on low Fed Rates after the Great Recession actually were the cause of it.
Update: Paul Krugman explains Laffer’s bizarre monetary theory well before this interview:
The Trumpification of the Federal Reserve: In late 2015 then-candidate Donald Trump accused Janet Yellen, chair of the Federal Reserve, of being part of a political conspiracy. Yellen, he insisted, was keeping interest rates unjustifiably low in an attempt to help Hillary Clinton win the presidency. As it happens, there were very good reasons for the Fed to keep rates low at the time. Some measures of the job market, notably prime-age employment, were still well below precrisis levels, and business investment was going through a significant slump — a sort of mini-recession. Fast forward to the present. The employment picture is much stronger now than it was then. There are hints of an economic slowdown, partly because of the uncertainty created by Trump’s trade war, but they’re considerably fainter than those of 2015-16. And Trump himself keeps boasting about the economy’s strength.
But of course Trump insists we need to lower interest rate because??? And of course Art Laffer has to agree with his political master.
PGL:
I added the You tube clip to your post. Art from Laughter Associates certainly made me laugh. The low and close to zero interest rates of treasuries caused foreign investment to go mortgages creating huge swathes on investment in housing and especially vacation homes. I can see why you are pissed.
There’s certainly something Dickensian about Art Laffer’s name. Why anyone pays attention to him is beyond me.
The Fed’s low rates are part of the problem. The Fed should be looking after its owners. They are not. Laffer is just being honest.
The Fed can’t stimulate demand, they simply can’t. Sadly new keynesian and neoclassicalists still don’t get it. Trying to build in more banking loans is the problem. This is where Marx’s school completely blows away you guys. Its where they agree with the Austrians, but unlike the Austrians understand the capitalist system simply does not work and there is no future boom coming without more and more debt expansion.
“Laffer is just being honest.”???? Now that is a real laugher!
It seems MSNBC has made this youtube recording unavailable. I guess the entire episode was too embarrassing. BTW Bert seems to think that Art Laffer is a Marxian when it comes to monetary policy. I guess that is why Laffer comes across as so incredibly confused!
PGL:
I saw what MSNBC did and I think they are hiding it now. I can only guess they did not like the publicity from the interview and everyone laughing at Laffer. An MSNBC gaffe. Anyone reading the comments will understand what MSNBC did.
You could tell the difference between Laugher lying(Reagan era growth rates) and telling the truth(Fed interest rate policy).
Clearly banks are squeezed because of the low rates.
“Clearly banks are squeezed because of the low rates.”
Really? Let’s see banks pay lower rates on their deposits and receive lower rates on their loans. So their margin is the same. Squeezed? Clearly Bert never took monetary economics. But troll on dude!