US economy warning issued as Biden branded ‘clueless' over inflation surging policies

Dr Arthur Laffer, who served as a member on Ronald Reagan’s economic policy advisory board, claimed Biden’s administration was narrowing income inequality by making all Americans worse off.

He told GB News: “All these people talk about income inequality, that’s a silly concept. Income equality can be achieved by everyone getting poorer, only the rich getting poorer faster than the poorer getting poorer.

WATCH NOW: Dr Laffer discusses the US economy

“Income inequality can be reduced dramatically by the poor and rich getting rich faster but with the poor getting rich faster than the rich getting richer.”

The 83-year-old, who is known for the tax-cutting Laffer Curve theory, suggested Biden should reduce the burden to facilitate economic growth.

Taking aim at the 46th President, Dr Laffer said: “Where did he get his PhD, excuse me? I hate to say it but he doesn’t know economics.”

He added: “He has had a very negative impact on the American people. You can see that in the polls, you can see that by the numbers, you can see that in the participation rate, you can see that by productivity growth, you can see it by the expected real rate of return on the unit of capital … All of these numbers are bad.”

The United States is teetering towards a recession as 30-year mortgage is about to top eight per cent and energy prices sent inflation spiralling to 3.7 per cent.

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However, the 46th President has pushed on with several pieces of legislation to help Americans during the cost-of-living crisis, including the Inflation Reduction Act.

The Inflation Reduction Act is hoping to reduce carbon emissions, enhance tax enforcement and increase corporate levies.

But the 80-year-old also slammed trickle-down economics.

He said: “That’s been the Republican plan so far — good for big business, bad for everybody else. It’s not even that good for big business anymore.”

Addressing whether Donald Trump’s potential return is the only hope, he continued: “It’s not the only hope but it’s a big hope. If he comes back, I think he will be a very fine President. He was in his four years in office.

“If it hadn’t been for the pandemic, he would have been the best President in his first term ever.”

Laffer added: “Here you had a man who tried to do his very best for the country and if it weren’t for the pandemic he would have been re-elected in a landslide. We will see what happens in 2024 but I’m quite excited.”

Trump, who faces several legal obstacles, is running for his third successive White House bid.

The property-tycoon-turned-politician is leading against his Republican rivals and is marginally ahead of Biden, recent opinion polls have suggested.

The 77-year-old legislated for significant tax cuts during his first stint in the Oval Office as the Tax Cuts & Jobs Act reduced the burden facing Americans.

However, the economist suggested America’s economic woes were a part of a wider sense of fiscal frailty as he highlighted China’s woes and branded the European Union “losers”.

Laffer suggested reducing international barriers, including sanctions and trade deals, could ease the problem.

Addressing questions about a transatlantic trade deal, Laffer added: “I think Trump had it [a UK-US trade deal] very much at the forefront of his administration … but we should have free trade with everyone.”

The 45th President, who was extremely proud of his Scottish roots, pushed for an Anglo-American accord but concerns about the impact on the UK aerospace industry and steel torpedoed a last-ditch deal.

Despite the Hibernophile incumbent President frequently pouring cold water on trade talks, recent reports have suggested Biden and Rishi Sunak are preparing a “foundational” accord ahead of the next election.