Schiff vs Laffer

This video clip is just incredible (19mb, nearly 9 minutes long). It shows a debate between economic pessimist Peter Schiff and the over-optimistic Arthur "Supply Side" Laffer. It was recorded on 28 August 2006 - over two years ago.

In this clip, Schiff argues that the housing market will eventually pop and a recession is around the corner. He argues that America has borrowed and spent too much and needs to return to producing things and saving money.

Arthur Laffer argues that the economy is going fine, thank you very much, and that there is no need to worry.

Laffer, it must be said, is the intellectual basis of Supply Side Economics and popularized the "Laffer Curve".

Schiff is an Austrian Economist, a school of economic thought that I respect and have much in common with (though I disagree with some of it).


BLBeamer said...

If I had to pick a school, the Austrian school is the one I believe I would be most comfortable in. That's why, after much agonizing, I find myself opposing the bailout, at least in its current form.

This guy articulates better than I can my thoughts. I don't know if he's an Austrian, but his reasoning resonates with me.

Magotty Man said...

I tend toward the Austrian/Third Way school too, but I have a stubborn streak of Distributivism in me as well.