"The truth of the matter of is that stimulus money not only doesn't stimulate; it actually reduces output"

In this quote, Arthur Laffer is revealing his belief that federal government stimulus money does not have the intended result of promoting the economy. Instead, he argues that it actually has a negative impact by minimizing output. This implies that the cash being injected into the economy does not cause increased production or economic development, but rather has the opposite effect. Laffer's statement recommends that he believes federal government intervention in the economy through stimulus measures is ineffective and might even be hazardous. This quote reflects his economic theory referred to as the "Laffer Curve," which argues that there is a point at which increasing taxes or government costs will have a negative influence on the economy.