"With the shrinking of the US economy, and it's shrinking very rapidly, you not only have more money, but you also have fewer goods. That's a classic double-whammy on inflation"

This quote by Arthur Laffer is referring to the current state of the United States economy. He is stating that due to the shrinking of the United States economy, there is less money offered and less products. This is a double-whammy on inflation due to the fact that it indicates that the costs of goods will increase due to the lack of cash and goods offered. This is an issue since it means that people will have to pay more for the same items, which can cause a reduction in acquiring power. This can have a negative impact on the economy as individuals will be less likely to buy goods and services, causing a decline in economic activity. In conclusion, the shrinking of the US economy is a significant problem that can lead to a boost in inflation and a reduction in economic activity.