WHO SPEAKS.
LARRY: HELLO, FOLKS, WELCOME TO
"KUDLOW," I’M LARRY KUDLOW.
WELL THE TALK OF THE TOWN THIS
EVENING IS PRESIDENT JOE BIDEN’S
ANNOUNCEMENT A LITTLE OVER AN
HOUR AGO TO CANCEL STUDENT LOANS
TO A LARGE NUMBER OF PEOPLE WHO
ARE MOSTLY CONCENTRATED CONCENTR
UPPER REACHES OF OUR NATIONAL
INCOME.
I’M BEING A LITTLE VAGUE HERE
BECAUSE I’M SEEING A LOT OF
NUMBERS BANDIED ABOUT.
SO FAR THERE HAS BEEN NO
OFFICIAL SCORECARD PRICEOUT FROM
THE CONGRESSIONAL BUDGET OFFICE
OR NOT THAT I KNOW OF.
ESSENTIALLY KIND OF SOUNDS LIKE
A MARRIED COUPLE EARNING
$250,000 A YEAR WOULD BE
ELIGIBLE FOR A BAILOUT OF
ROUGHLY $20,000 ON THEIR STUDENT
LOANS.
THERE ARE PROVISIONS FOR PEOPLE
WORKING IN NON-PROFITS.
THERE ARE PELL GRANT LOANS
INVOLVED, ENORMOUS COMPLEXITY
FROM THE WHITE HOUSE FACT SHEET
AND OTHER SOURCES.
MY BASIC TAKE IS REAL SIMPLE.
THIS HERE IS A BAD IDEA, BAD.
BIDEN IS USING QUESTIONABLE
COVID HEALTH EMERGENCY
AUTHORITY, A VERY SHAKY
ASSUMPTION TO HAND OUT ELECTION
YEAR RELIEF.
MORE OR LESS 70% OF
PREDOMINANTLY MIDDLE CLASS
TAXPAYERS WILL BAIL OUT
SOMETHING LIKE 30% OF THOSE WHO
ARE BEST WELL OFF.
OH, THAT’S RIGHT.
DOES IT SOUND LIKE AN ELECTION
YEAR HANDOUT, REALLY DOES, THINK
OF THAT WITH THE SCHUMER-MANCHIN
BILL, BUSINESS TAX HIKES, IT’S
ASSAULT SQUAD THE GOVERNMENT IS
COMING AFTER TYPICAL FAMILIES
AND WORKING FOLKS THAT IS THE
WAY THIS WHOLE STORY IS SHAKING
OUT.
THERE IS NO DEBT REDUCTION
BECAUSE IN FOUR YEARS THE
STUDENT DEBT VOLUME IS GOING TO
BE ALL THE WAY BACK TO
$1.6 TRILLION.
IS IT INFLATIONARY?
YEAH.
AT LEAST INDIRECTLY.
IF THE INTEREST AND PRINCIPLE ON
YOUR STUDENT LOAN IS CANCELED
YOU WILL PROBABLY HAVE MORE
MONEY TO SPEND ELSEWHERE ALL
THEY YOU HAVE TO PUT UP WITH
HIGHER ENERGY AND FOOD AND
GROCERY PRICES.
ANYWAY, THAT WOULD IN THEORY BID
UP DEMAND AND BIDEN’S ENHANCED
TAXING AND REGULATORY
STRANGLEHOLDS WILL KEEP DOWN
SUPPLY.
I’M OVER SIMPLIFYING.
AT LEAST ONE WAY TO LOOK AT IT.
NOW, IF THIS WHOLE STUDENT
BAILOUT BUSINESS COSTS
$300 BILLION OVER 10 YEARS, AS
SOME ARE ESTIMATING, THEN THAT
WIPES OUT THE SCHUMER-MANCHIN
DEFICIT REDUCTION.
I NEVER BOUGHT INTO THAT DEFICIT
REDUCTION STORY ANYWAY, BUT AT
LEAST ON SOME PAPER IT WOULD
WIPE IT OUT.
ONE LAST THOUGHT ON THIS, THE
EDUCATION DEPARTMENT, BLESS ITS
SOUL, DOES NOT REMOTELY HAVE THE
EXPERTISE TO HANDLE A
$1.6 TRILLION STUDENT LOAN
PORTFOLIO.
IT IS A REGULATORY AND POLICY
AGENCY.
IT IS NOT A BANK.
SHADES OF THE EPA NOW RUNNING A
27 BILLION-DOLLAR NATIONAL
CLIMATE BANK.
SAME KIND OF NONSENSE.
IT WAS PRESIDENT OBAMA WHO ENDED
PRIVATE LENDING BY BANKS AND
OTHERS FOR ALL STUDENT LOANS,
MOVED THE WHOLE SORRY STORY INTO
THE FEDERAL GOVERNMENT.
IT INTO THE EDUCATION
DEPARTMENT.
NOW, TRUMP ADMINISTRATION WANTED
TO PULL OUT OF THE EDUCATION
DEPARTMENT.
EDUCATION SECRETARY BETSY DEVOS
WANTED TO PULL IT OUT OF
EDUCATION DEPARTMENT.
GET IT OUT THERE BECAUSE THOSE
EDUCRATS DON’T KNOW ANYTHING
ABOUT BANKING.
NOW SPEND MOST OF THEIR TIME ON
CRITICAL RACE THEORY AND LORD
KNOWS WHAT ELSE.
PLUS, WHY NOT MOVE STUDENT
LENDING BACK TO THE PRIVATE
LENDING SECTOR, YOU KNOW, BANKS,
ALL THAT?
THEY KNOW HOW TO JUDGE CREDITS.
THEY KNOW HOW TO EVALUATE FUTURE
EARNINGS STREAMS AND RISKS.
THEY’RE NOT PERFECT BUT THEY’RE
GOING TO BE A LOT BETTER THAN
THE EDUCATS.
TEAM BIDEN DOESN’T LIKE THE
PRIVATE SECTOR.
THAT IS WHY THEY SPEND THEIR
TIME TRYING DESPERATELY TO
OVERTURN DONALD TRUMP’S
PRO-GROWTH, TAX, REGULATORY
ENERGY POLICIES.
INSTEAD THE BIDENS LOVE FEDERAL
CENTRAL PLANNING, JAMMING THE
FAUX PROGRESSIVE POLICIES DOWN
OUR THROATS.
AKA, BIG GOVERNMENT SOCIALISM.
FORMER TRUMP SENIOR ADVISOR,
GOOD FRIEND, JARED KUSHNER,
JARED IS GOING TO BE HERE A BIT
TO TALK ABOUT MANY ACHIEVEMENTS
OF THE TRUMP ADMINISTRATION,
INCLUDING WORKING IN THE PRIVATE
SECTOR AND PROVIDING INCENTIVES.
ALL THIS BRINGS ME TO THE LAST
ECONOMIC THOUGHT, STAY WITH ME,
PLEASE.
UNFORTUNATELY, MORE BAD NEWS.
THIS TIME FROM THE PURCHASING
MANAGERS AND FROM SLUMPING
BUSINESS INVESTMENT SPENDING.
NEW DATA.
THE BIDENS HAVE JUST PUBLISHED
THEIR MID-YEAR BUDGET AND
ECONOMIC REVIEW AND IT MARKS
DOWN GROWTH AND INCREASES
INFLATION.
BUT HERE’S THE TRAGEDY.
FOR THE NEXT 10 YEARS THE BIDEN
ECONOMY, BY THEIR OWN ESTIMATES
IS PROJECTED TO BARELY GROW BY
2% A YEAR.
YOU KNOW IF ALL THIS BIG
GOVERNMENT SOCIALISM WAS SUCH A
GREAT ECONOMIC TONIC THEN WHY
DOESN’T IT PRODUCE THE GOODS
LITERALLY?
KIND OF LIKE BUYING AN EXPENSIVE
CAR THAT IS ALWAYS IN THE REPAIR
SHOP.
WHO NEEDS IT.
LONG-TERM GROWTH USED TO RUN
3 1/2% YEARLY.
THAT IS WHEN FREE ENTERPRISE
CAPITALISM WAS STILL IN THE
DRIVER’S SEAT.
WHAT GOOD ARE SOCIALISTS IF THEY
CAN’T PRODUCE?
I MEAN HOW ABOUT GROWTH
INCENTIVES THROUGH THE
MARKETPLACE RATHER THAN
BAILOUTS?
LEAVE US ALONE TO WORK, PRODUCE,
INVEST INSTEAD OF STRUGGILNG OUR
HOPES AND DREAMS?
HOW ABOUT A FREE CAPITALIST
ECONOMY TO GET US BACK TOWARD
FULL THROTTLE 4% PROSPERITY, HOW
ABOUT THAT?
SO SAVE AMERICA, REPEAL