The Medal of Freedom in Economics
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
It turns out that President Trump’s presentation Wednesday of the Medal of Freedom to the supply-side economist Art Laffer coincided with a record-high of the stock market — at least as measured by the Standard & Poor’s 500. That is nicely marked in the latest number of the FutureOfCapitalism blog, edited by our columnist Ira Stoll. He notes that the market’s apex was hit despite the war-clouds scudding out of Iran.
“Perhaps it was just a coincidence,” Mr. Stoll writes, “but perhaps it was the wisdom of the crowd in understanding that a share in a company is worth more when the economy is growing, and when the tax laws allow a company’s owners to keep a bigger share of the profits.” Such a tax regime is largely owing to Mr. Laffer and the economists, politicians, and newspapermen he educated with his famous Laffer curve.
At the Medal of Freedom presentation, President Trump offered a remarkable glimpse of what he himself is like as a person. It belies the notion that he is but a showman with scant appreciation for ideas. He described the Laffer Curve in detail and spoke of Mr. Laffer’s early work for Governor Jerry Brown of California, as well as President Reagan. Mr. Trump disclosed that he had studied the Laffer Curve, and over the years has heard it discussed at Wharton.
Mr. Laffer spent his remarks acknowledging an array of colleagues and collaborators. Among those at the ceremony were Vice President Pence, Steve Forbes, Larry Kudlow, Steve Moore, and others who played roles in what is known as the supply-side revolution. Several figures now gone — Jack Kemp, Robert Bartley of the Wall Street Journal, and Jude Wanniski — were also named. All the more remarkable is the staying power of the supply-side ideas.
After acknowledging his appreciation of all these individuals, and others not present, including Robert Mundell, who won his Nobel Prize for supply-side economics, Mr. Laffer also acknowledged the importance of the role of political leaders. It can’t be a coincidence, we thought, that the two presidents with whom Mr. Laffer is associated are, in Reagan and Mr. Trump, former college majors in economics. It’s inspiring in an age that, understandably, hungers for military and judicial glory.
