“Art Laffer, an economist and former adviser to President Ronald Reagan, says President Barack Obama’s recent criticism of the Republican budget plan misses the mark.
“What Obama is missing is that government spending doesn’t create jobs, it destroys jobs,” Laffer told CNBC.
“The tooth fairy doesn’t work on the Treasury staff,” he said.
“When you cut government spending, you get a boom in the economy,” says Laffer.
“When you increase it, the economy collapses, and it’s exactly what happened under [President George W. Bush] and Obama. They were two peas in a pod.”
Former president Bill Clinton cut government spending as a share of GDP, Laffer notes. “Look at the boom that occurred under Clinton,” he says. “That’s what we’re talking about.”
The same thing happened after World War II, says Laffer, when a massive cut in government spending as a share of GDP sent the private economy “through the ceiling.”
Moreover, to help ease the burden of entitlement spending Laffer thinks the age at which people can receive Social Security benefits should be extended “way out.”
“We’re living longer. We’re living much healthier,” Laffer says. “Let us be productive without being on Social Security.”
The Christian Science Monitor reports that In an election-year pitch to middle-class voters, Obama is denouncing the House Republican budget plan as a “Trojan horse,” warning that it represents “an attempt to impose a radical vision on our country” that would hurt the pocketbooks of working families.”
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