Donald Trump today awards the Presidential Medal of Freedom to Republican economist Art Laffer, the ‘godfather’ of supply-side trickle down Reaganomics. Laffer’s contributions have built a streak of unbroken Republican policy wrongness over a time and scale few policy entrepreneurs in history can match. Trump is giving Laffer the award because last year he coauthored a fawning tribute to President Trump and his agenda. Trump is known to habitually reward his most slavish supporters.
Reaganomics is President Ronald Reagan's conservative economic policy that promised to subsantially shrink the federal government and government spending, and reduce the government's influence on the economy.
Reagan’s legislative agenda implemented an era of laissez-faire economic policy that promoted unregulated “free markets” and untaxed “capitalism” where corporate tax rates and capital gains rates for individuals were effectively diminished, as near as possible, to zero.
Dubbed supply-side, or trickle-down, economics, President Reagan’s economic policy was to reduce, and where possible, elminate taxes on businesses and the wealthy in society as a means to stimulate business investment. Reagan’s theory of trickle-down economics held that corporations and the wealthy would directly invest the money they don’t pay to the government in taxes into business development, which creates jobs, and supports social institutions, which benefits society at large. The theory says that as companies get more cash from tax cuts, they will hire new workers and expand their businesses. It also says that income tax cuts to workers give them more incentive to work, increasing the supply of labor.
