Posted on Fri, May. 09, 2008

Reagan economic adviser criticizes stimulus agenda

By BARRY SHLACHTER

Star-Telegram Staff Writer

Arthur Laffer, the Reagan adviser known as the "father" of supply-side economics, Thursday lambasted the tax policies of Barack Obama and Hillary Clinton as anti-growth and criticized the stimulus program backed by the Bush administration as being no help to the nation's economy in the long run.

"Unfortunately, the United States has yet to find the tooth fairy," Laffer, 67, said of the tax-rebate checks.

Several hundred people came to the Amon G. Carter Jr. Exhibits Hall to hear Laffer and other speakers at a program put on by Houston-based BizRadio Network.

Laffer says that letting the Bush tax cuts expire, as the two Democratic presidential candidates advocate, will not foster economic growth. And he said that policies aimed at curtailing free trade agreements like NAFTA would only hobble it further.

BizRadio Network, which began broadcasting in North Texas three months ago, has received capital from two private-equity funds, including the Laffer Frishberg Wallace Fund, which is connected to Laffer, said Daniel "The Money Man" Frishberg, a co-founder of the company. Laffer appears on Frishberg's afternoon show once a week.

Frishberg said he is seeking government approval to purchase a Mineral Wells station, KJSA/1110 AM, from owner Gary Moss of Cleburne for $7.2 million. The 20,000-watt station broadcasts BizRadio programs during daytime hours.

The Houston operation, which includes an AM station and a personal-finance learning center, had revenues of $3 million last year and should start turning a profit this summer when a full schedule of investment courses gets under way, Frishberg said.

A similar complex with a radio station, a learning center and a Wall Street-themed restaurant/bar is being planned for Fort Worth, he added, calling the concept "a 'sports bar' for investors."