From the historic campus of Hillsdale College in Hillsdale, Michigan, where the good, the true, and the beautiful are taught, nurtured, and honored, this is the Radio Free Hillsdale Hour, bringing the activity and education of the college to listeners across the country.

What happens is when the political process in America starts creating poverty instead of prosperity,

we need to do something about it to, again, provide the opportunities for all of us here in this country to have our lives better.

This is your host Scott Bertrand, and that's famed economist Art Laffer,

economic policy advisor to President Ronald Reagan and others,

and also recipient of the Presidential Medal of Freedom.

He's also featured in the brand new Hillsdale online course,

Supplyside economics and

American prosperity. We talk at length about that class today. Dr. Laffer, thanks so much for joining us.

Oh, it's my pleasure. I love Hillsdale. You did a great job on those lectures. I mean,

just amazing job. People can see that the trailer, the preview up it really gets people interested we're going to

try to do the same thing today in our conversation and convince people and encourage people to

go watch the entire series first of all we'll talk about a couple of terms first that people are

going to run into when they take the course and one is right there in the title people who are

not economic students or haven't taken economics classes might not know. Supply side economics,

when we say that, what do we mean?

We mean that people respond to incentives, and it's incentives that drives the economic system.

For example, if you tax something, you'll get less of that thing you taxed. If you

subsidize things, you'll get more of that, of that thing that you subsize, and looking at, let's say,

macroeconomic policies right now, if you tax people who work and you pay people who don't work,

you're not going to get that many people working. This is the way supply

side economics works is it responds to incentives, government incentives to generate the economy

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