Welcome back to FYI, the For Your Innovation Podcast from ARK Invest. Today on the show we are joined by two special guests. First we have, Catherine Wood CEO and CIO of ARK Invest, as well as a her mentor, former professor, and advisor to ARK Investment Management LLC, Dr. Art Laffer. You might know Dr. Laffer from his famous Laffer Curve. He first gained prominence during the Reagan administration as a member of President Reagan’s Economic Policy Advisory Board. Dr. Art Laffer is also the founder and chairman of Laffer Associates, an institutional economic research and consulting firm, as well as Laffer Investments, an institutional investment management firm utilizing diverse investment strategies. In today’s episode we reflect back on Dr. Laffer’s time in the Reagan administration, and what technology and economics was like back in the 80s. We also unpack exactly how the Laffer Curve works, and why cutting taxes can actually result in generating more income for a country as a whole. Finally, we dive into the intricacies of the US-China relations, why they are critical for economic advancement, and the incredible opportunities that lie within free trade. For all this and more, be sure to listen in to today’s episode!
Key Points From This Episode:
- Laffer’s introduction to ARK Invest and his first impressions.
- Reflecting back on the 80s and Dr. Laffer’s time in the Reagan administration.
- The technology perspective of the 80s: the technology boom cycle.
- A brief overview of the Laffer Curve, and why it was created.
- Recognizing the benefits of cutting tax rates to generate more income.
- The current state of where the US economy is headed.
- Laffer’s view on today’s US and China relations
- Importance of a great trading relationship with China.
- What free trade would do for the markets; investment attraction.
- Books Dr. Laffer is reading that are exciting from a technology perspective.
- Understanding the pro-cancer narrative of the future.
“Nostalgia always creates an image of the past that isn’t true.” — Dr. Art Laffer [0:06:24]
“Technology is not new, but it’s a different form today.” — Dr. Art Laffer [0:09:25]
“Every time we’ve cut the highest tax rate, tax revenues from the top 1% of income earners have gone way up, not down.” — Dr. Art Laffer [0:12:32]
“I see no reason why China and the US shouldn’t be the closest allies ever.” — Dr. Art Laffer [0:21:55]
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