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LARRY: HELLO, FOLKS.
WELCOME TO "KUDLOW," I’M LARRY
KUDLOW.
SO THE U.S. MIDTERM ELECTIONS
CAVALRY ARRIVED EARLY IN LONDON.
WHAT DO I MEAN BY THAT?
WELL, THE NEW BRITISH PRIME
MINISTER, LIZ TRUSS, HAS LAID
OUT A TERRIFIC SUPPLY-SIDE
ECONOMIC GROWTH PLAN WHICH LOOKS
A LOT LIKE THE BASIC THRUST OF
KEVIN McCARTHY’S COMMITMENT TO
AMERICA PLAN.
LET’S START WITH TRUSS.
HE IS SLASHING TAX RATES AND
DEREGULATING ENERGY.
I JUST LOVE IT.
THAT’S THE LIBERAL BUSINESS
MEDIA, THE LIBERAL BUSINESS
MEDIA, YOU KNOW WHO I’M TALKING
ABOUT, IS NOW TRASHING HER PLAN.
THAT TELLS ME TRUSS HAS IT
EXACTLY RIGHT.
SHE INTENDS TO PERMANENTLY
REDUCE TAX RATES, PERMANENTLY
REDUCE TAX RATES, ON PERSONAL
INCOME, CORPORATE INCOME AND
PAYROLLS, PLUS SHE’S ENDING THE
BAN ON FRACKING OF THAT WAS PUT
INTO PLACE BY HER PREDECESSOR,
BORIS JOHNSON.
IN FACT, SHE’S BASICALLY
REPEALING BORIS JOHNSON’S ENTIRE
AGENDA WHICH IS A GOOD THING.
MR. JOHNSON WAS RAISING TAXES,
BIG SOCIAL SPENDING AND WENT
GREEN NEW DEAL IN A HUGE WAY.
THE RESULTS WERE DEVASTATING.
EVEN THOUGH HE’S A TORREY, HE
SOUNDED JUST LIKE JOE BIDEN.
AND AS FAR AS THESE PHONY
DEFICIT MOANERS FROM THE
BUSINESS MEDIA, SUPPLY-SIDE TAX
CUTS AND DEREGULATION WILL, OVER
TIME, PRODUCE SO MUCH NEW GROWTH
AND SO MUCH LESS TAX AVOIDANCE
THAT THE REVENUES WILL COME
POURING IN TO FINANCE THE TAX
CUTS AND THEN SOME.
IN OTHER WORDS, THE LAUGHER
CURVE.
LAFFER CURVE.
WHAT DOES THAT TELL YOU?
BY THE WAY, LIZ TRUSS IS
BASICALLY OF COURSING A
THATCHER/REAGAN/TRUMP ECONOMIC
POLICY.
BELATEDLY, THE BANK OF ENGLAND
IS RAISING RATES AND IS
TIGHTENING MONEY.
NOW, THE PROGRAM’S
IMPLEMENTATION IS GOING TO TAKE
SOME TIME, BUT ESSENTIALLY TIGHT
MONEY TO STRENGTHEN THE CURRENCY
ALONG WITH LOW TAX RATES TO
REJUVENATE ECONOMIC GROWTH
INCENTIVES IS TOTALLY, EXACTLY
THE RIGHT POLICY MIX TO GET US
OUT OF STAGFLATION.
THAT STAGFLATION IS SPREADING
HERE AND THROUGHOUT THE REST OF
THE WORLD.
HERE IN THE U.S. THE FED IF
SEEMS TO HAVE THE TIGHT MONEY,
STRONG KING DOLLAR CURRENCY
STORY ABOUT RIGHT, BUT THERE ARE
NO TAX CUTS, NO DECAN REGULATION
FOR SUPPLY-SIDE GROWTH.
THAT’S THE BIG PROBLEM.
AND IT’S A PROBLEM THAT, IF NOT
FIXED SOON, IT’S GOING TO LEAD
US TO A DEEPER BEAR MARKET
RECESSION.
I HOPE PRIME MINISTER TRUSS DOES
NOT DELAY THE TAX CUTS, BECAUSE
THAT WAS A MISTAKE THAT RONALD
REAGAN MADE.
THE SOONER HER PLAN IS
IMPLEMENTED, THE FASTER BRITAIN
WILL CLIMB OUT OF THE DOLL --
DOLDRUMS.
MEANWHILE, CONGRESSIONAL
REPUBLICANS PUBLISHED THEIR
COMMITMENT TO AMERICA TODAY, AND
IT LOOKS LIKE A PRO-GROWTH,
SUPPLY-SIDE AGENDA TO ME.
THE GOP IF PLATFORM WOULD TACKLE
INFLATION BY CURBING EXCESS
SPENDING, BY CUTTING TAXES AND
MOVING BACK TO DONALD TRUMP’S
DEREGULATION POLICIES.
LIKE TRUSS, KEVIN McCARTHY AND
COMPANY WILL END THE BAN ON
LEASING AND PERMITTING AND
FRACKING AND PIPELINING AND SO
FORTH.
THEY WILL MOVE BACK TO ENERGY
INDEPENDENCE.
THEY’RE ALSO PUTTING A PREMIUM
ON COMBATING CRIME AND ILLEGAL
IMMIGRATION.
PLUS, THEY INTEND TO ADVANCE A
PARENTS’ BILL OF RIGHTS IN
EDUCATION, MAKE HEALTH CARE MORE
TRANSPARENT WITH GREATER CHOICE
AND COMPETITION ALONG WITH
PROTECTING CONSTITUTIONAL
FREEDOMS INCLUDING FREE SPEECH,
RELIGIOUS FREEDOM AND
SAFEGUARDING THE SECOND
AMENDMENT.
PLUS, THEY WILL LEAVE ABORTION
ISSUES TO THE STATES AS PER THE
RECENT SUPREME COURT DECISION
AND ALSO LEAVE ELECTION LAW TO
THE STATES WITH VOTER ID AND
NONPARTISAN OBSERVER ACCESS.
THIS IS A VERY COMMON
SENSE-ORIENTED PACKAGE OF POLICY
COMMITMENTS.
INFLATION AND CRIME ARE THE
HEADLINERS.
THOSE ISSUES ARE GOING TO DECIDE
THE MIDTERM ELECTIONS.
JUST AS LIZ TRUSS IS OVERTURNING
BORIS JOHNSON, THE GOP SEEKS TO
OVERTURN JOE BIDEN.
HISTORICALLY, AFTER SOME MODEST
DISCAN AGREEMENTS IN THE 18TH
CENTURY YOU MAY RECALL, BRITAIN
AND AMERICA HAVE HAD A SPECIAL
RELATIONSHIP.
THE WORLD’S LEADING DEMOCRACIES.
THINK MAGNA CARTA AND THE
CONSTITUTIONAL RULE OF LAW.
SO IT’S VERY GOOD TO SEE NOW THE
TWO GREAT ENGLISH-SPEAKING
NATIONS ARE MOVING THEIR
CAVALRIES IN THE SAME DIRECTION.