Economist Art Laffer Discusses 50 Years of Laffer Curve and Presidential Advisory Roles in New Podcast

Economist Art Laffer, renowned as the "father of supply-side economics," recently appeared on the Hoover Institution's "Capitalism and Freedom in the 21st Century" podcast, hosted by Jon Hartley. The episode, published on September 25, 2025, delved into Laffer's extensive career, his academic influences, and his impactful advisory roles to multiple U.S. presidents. Laffer discussed a wide array of economic topics, including fixed versus floating exchange rates, the enduring relevance of the Laffer Curve, and the principles of supply-side economics.

During the discussion, Laffer reflected on his academic journey, highlighting his Stanford PhD and tenure as a professor at the University of Chicago. He credited influential economists such as Robert Mundell, Milton Friedman, George Shultz, Ken Arrow, Ronald McKinnon, and Harry Johnson as key figures in his intellectual development. These early experiences shaped his perspective on monetary and fiscal policy, which he later applied in various governmental capacities.

A central theme of the conversation was the Laffer Curve, which illustrates the theoretical relationship between tax rates and tax revenue. Laffer emphasized that while the existence of the curve is now widely accepted, the contemporary debate focuses on the optimal point on the curve and how factors like tax sheltering and mobility influence its shape. He noted that the "prohibitive range" of the Laffer Curve, where higher tax rates lead to lower revenue, may occur at surprisingly low tax percentages.

Laffer's advisory roles spanned several administrations, including those of Richard Nixon, Ronald Reagan, and Donald Trump. He was a member of Reagan's Economic Policy Advisory Board and played a significant role in shaping the 1986 tax act, which drastically reduced marginal tax rates. More recently, he advised the Trump administration on economic policies, including the Tax Cuts and Jobs Act. His insights underscored the consistent application of supply-side principles across different political eras.

Beyond his policy work, Laffer continues to be an active voice in economic discourse. He recently resigned from the board of VerifyMe, Inc., a move the company stated was not due to any disagreements regarding operations or policies. Laffer also regularly contributes opinion articles to publications like The Wall Street Journal and The Washington Times, maintaining his influence on economic thought and public policy debates.