This should lead to a long period of prosperity in America, Art Laffer says

A New Era of Prosperity? Laffer, Moore, and Kudlow Applaud Trump-Backed Economic Bill

In a lively and revealing panel, economic powerhouses Art Laffer, Steve Moore, and Larry Kudlow made the case that the latest economic legislation—spearheaded by the Trump administration—has the potential to launch the United States into a new golden age of 3% to 4% GDP growth, tackle budget deficits, and roll back years of heavy-handed regulation and spending under the Biden presidency.

Described as a landmark supply-side bill, the legislation touches everything from tax cuts to school choice, healthcare freedom, green energy rollbacks, and Opportunity Zones—initiatives the panelists argue are setting the groundwork for a prolonged era of economic dynamism.

Let’s break it all down.

🚀 The Promise of 3–4% Growth: “This Bill is a Game-Changer”

Art Laffer, legendary Reagan-era economist and architect of supply-side theory, was enthusiastic:

“Trump literally leads the U.S. and the world economy. Supply-side economics combined with peace through strength should lead to a long, long period of prosperity. This bill sets the groundwork for the next three and a half years, which will be spectacular.”

Laffer’s optimism centers around key pillars of the bill:

Dramatic cuts in business taxes

Elimination of the tax on service workers’ tips

Regulatory rollbacks, especially tied to the Green New Deal

Incentives for investment in underserved communities

The White House estimates that sustained growth above 3% could yield $5 trillion in added revenue, slashing deficits and expanding the tax base—without raising tax rates.

🏫 Beyond Tax Cuts: School Choice, Health Savings, and Economic Freedom

Steve Moore, host of More Money on WABC Radio, hailed the bill as “one of the great conservative triumphs of the last 30 years.”

While many headlines focused on tax relief, Moore emphasized the “hidden gems” embedded in the bill:

Historic expansion of school choice, allowing federal dollars to follow students to the schools of their families’ choosing.

Increased limits on Health Savings Accounts (HSAs), empowering Americans to control their own healthcare spending.

The end of the electric vehicle mandate, restoring free-market choice in the auto sector.

Expansion of Opportunity Zones and Enterprise Zones, a decades-long goal for Laffer and others to spur private investment in low-income areas.

“I could go on and on,” Moore said. “This is a great bill in so many ways beyond the tax cuts.”

💰 Balancing the Budget: Necessary or Obsolete?

The debate between fiscal hawks and supply-side optimists flared during the panel discussion.

Larry Kudlow questioned whether the public still wants a balanced budget, citing political pressure and nostalgia for fiscal discipline. But Art Laffer pushed back, saying a balanced budget isn’t always economically sound:

“It makes no sense to have a balanced budget just for the sake of it. You need debt increasing somewhat each year for a growing economy. It gives you the ability to shift expenditures, deal with crises, and invest for the future.”

He likened this to World War II financing—arguing that without flexibility in debt, the Allies may not have prevailed.

But Moore disagreed, at least politically. “Voters still want to see the effort,” he said, noting that even a symbolic balanced budget signals discipline. He added that the growth dividend from this bill may be enough to significantly reduce the deficit-to-GDP and debt-to-GDP ratios, which could placate deficit hawks and voters alike.

📈 Growth Is Everything: The AI & Productivity Factor

Perhaps the most electrifying moment came when Moore made a bold prediction:

“If you get to 3.5%–4% growth—which I believe we can with AI, robotics, and productivity—you don’t just balance the budget. You start retiring the national debt.”

The implications are profound. With the AI boom expected to revolutionize entire industries, Moore argued that strategic deregulation, private sector reinvestment, and lower taxes could turn America into a 21st-century economic juggernaut.

It’s a familiar tune for supply-siders, but one with renewed credibility amid today’s tech transformation. Moore and Laffer both insisted that growth trumps austerity, and that innovation—not taxation—is the path to national renewal.

🧾 No Green Mandates, No Auto Pen

Another victory, said Moore, is the explicit dismantling of the Green New Deal framework, which he claims shackled American energy and consumer choice. The bill rolls back mandates on electric vehicles, green building codes, and federal climate targets.

“Buy any car you want,” Moore said. “We got rid of the mandates.”

This, paired with regulatory relief across multiple industries, is expected to unleash a new wave of business confidence, especially among small and midsize enterprises that bore the brunt of Biden-era rules.

Also notable is a rejection of what Kudlow derisively called “government by AutoPen”—a jab at reports that Biden-era executive orders were issued in bulk with minimal oversight or deliberation.

🔄 Can Trump Keep the Momentum?

While Trump has largely focused on border security, crime, and foreign policy in public appearances, this legislative win is being celebrated by conservative economists as proof that he can deliver serious economic reform—again.

Kudlow closed the segment with a chuckle and a dig:

“I’d keep cutting taxes, man. No politician can spend that money if we don’t send it to Washington in the first place.”

The underlying philosophy is clear: less government, more freedom, more growth.

📊 Final Verdict: The New Supply-Side Renaissance?

It’s early days, but if the projections hold true, this bill may be remembered as a defining moment in modern economic policy.

With deregulation, tax relief, and choice-driven reforms all in one package, Trump’s economic team has delivered a sweeping statement about the future: freedom works.

If GDP starts pushing north of 3.5% in the next few quarters, expect even critics to reevaluate. And if Moore’s bold prediction of retiring the national debt starts to gain traction, we could be entering an entirely new chapter in American prosperity.

For now, one thing is certain: Art Laffer, Steve Moore, and Larry Kudlow are smiling—and betting on growth.