New Jersey's Christie picks state Treasurer from Reagan adviser's firm

Published 10/27/2015, 03:34 PM
Updated 10/27/2015, 03:40 PM
© Reuters. U.S. Republican presidential candidate Chris Christie listens to a question from the audience at the No Labels Problem Solver Convention in Manchester

By Hilary Russ

NEW YORK (Reuters) - New Jersey Governor Chris Christie, a 2016 Republican presidential candidate, on Tuesday nominated as state Treasurer an executive of a research firm whose founder was instrumental in guiding Ronald Reagan's supply-side economic theories.

Christie tapped Ford M. Scudder, the chief operating officer of Nashville-based economic research and consulting firm Laffer Associates, to replace Andrew Sidamon-Eristoff, who left the administration in July.

Arthur Laffer, the firm's founder, is sometimes called the father of supply-side economics and advised former U.S. President Ronald Reagan, as well as former U.K. Prime Minister Margaret Thatcher, on fiscal policy.

Scudder's nomination comes as New Jersey struggles with ballooning public pension costs, a more sluggish economic recovery than neighboring states and a nearly insolvent transportation fund. Wall Street credit rating agencies rank the state the second lowest in the nation, behind only Illinois.

"The unique approach Ford brings will help build on my administration's approach to responsible management of the state's finances and prudent oversight of taxpayer funds," Christie said in a statement.

"I look forward to his insights on fiscal and tax policy solutions that will continue growing our economy and bringing much-needed relief to the burden shouldered by New Jersey taxpayers," Christie said.

Scudder and Laffer together have penned opinion pieces advocating for Reaganesque public fiscal policies.

In the Wall Street Journal in 2012, they wrote that the U.S. "cannot have a prosperous economy when government is overspending, raising tax rates, printing too much money, overregulating and restricting the free flow of goods and services across national boundaries."

Scudder's family history in the Princeton, New Jersey area dates back to the 1600s, Christie's statement said.

The state Senate, run by Democrats, must approve Scudder's nomination.

New Jersey Senate President Steve Sweeney said he had concerns about Scudder's nomination.

© Reuters. U.S. Republican presidential candidate Chris Christie listens to a question from the audience at the No Labels Problem Solver Convention in Manchester

"He is deeply tied to a failed economic philosophy that treated working people and the poor with disdain," Sweeney said in a statement. "We should disown the trickle-down, Laffer philosophy and invest in the people of New Jersey in ways that extend economic opportunities to everyone."

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