Arthur Laffer 2011 Economy Crash?

Arthur Laffer wrote a challenging opinion piece in the WSJ of June 7, 2010. He predicts economic crash and collapse when Obama's tax hikes become effective in 2011.

Arthur Laffer's June 7 op-ed "Tax Hikes and the 2011 Economic Collapse" will be ignored or denigrated by the left. Yet Mr. Laffer uses facts of the past to get a glimpse of the future.

Is Arthur Laffer right and should we expect an ecomomic crash in 2011?

asked by Boom in Investing | 5686 views | 06-10-2010 at 09:03 PM

The famed economist Arthur Laffer penned an explosive article for the Wall Street Journal.
The article not only predicts a major crash for the economy on 1 January 2011, but also explains in depth the fiscal policy decisions which will force this to happen.

Arthur Laffer implies that the current "low growth" for 2010 may be the high-water mark for our domestic economy given the higher tax rates on the horizon in the coming years.

The entire article is very much worth reading, but the gist of it is that corporations and high-income earners have been pulling as much possible earnings into the 2010 tax year as possible, because of the numerous tax increases that are coming in 2011. This inflates the apparent strength of corporate earnings, which artificially boosts the stock market to unreasonable and unsustainable levels.

Everyone from Alan Greenspan, to the IMF, to Gerald Celente has been making frightening predictions for the U.S. economy for months now. There is an important new book out called, "Rescuing Liberty," that explores what it will be like to live through such a fundamental breakdown when it happens.

Oil & gas are the villains of Obama's ideology and he does not understand we do not have $150 trillion plus to spare to substitute green power for existing oil & gas reserves, many not yet explored.
In case the the national debt approaches 90% of GDP we will be doomed to EU type of disintegration. It is time our oil & gas companies get all the support to develop our resources and avoid a EU type of disaster. Arthur Laffer might be right.

answered by Franklin | 06-10-2010 at 09:10 PM

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