FOUR SESSIONS.
THAT WAIL DO IT FOR US.
"KUDLOW" IS NEXT.
♪.
LARRY: WELCOME TO "KUDLOW," I’M
LARRY KUDLOW.
LIKE MOST OF YOU STAYED UP LAST
NIGHT READING PRESIDENT BIDEN’S
SPEECH HE READ TO THE DEMOCRATS
IN BALTIMORE.
THAT IS A JOKE.
IT WAS RIVETING.
THAT IS JOKE.
RAISED DEFICIT $10 TRILLION BY
10 YEARS.
THAT IS UNTRUTH.
HE REFERENCED THE TRUMP TAX CUTS
HE HATES.
THEY WERE SO SUCCESSFUL.
THOSE TRUMP TAX CUTS BROUGHT IN
REVENUES AS WELL AS GROWTH.
THOSE TAX CUTS DELIVERED 6 1/2%
GROWTH ECONOMY WHEN MR. BIDEN
WAS ELECTED WITH 1.4% INFLATION
RATE.
MR. BIDEN BRAGGED HOW IMPORTANT
THE $1.9 TRILLION AMERICAN
RESCUE PLAN IN MARCH OF 2021
WAS, HOW SUCCESSFUL IF IT WAS,
EVEN THOUGH THE FIRST FULL YEAR
IN OFFICE, ECONOMIC GROWTH
PLUNGED TO 0.9%, INFLATION
SOARED TO 6.9%.
IT IS NOT OVER YET.
BIDEN WENT ON TO SAY REPUBLICANS
WOULD CUT SOCIAL SECURITY,
MEDICARE, MEDICAID, VETERANS
BENEFITS, STANDARD STOCK
NONSENSE.
HE TOOK CREDIT FOR CUTTING
BUDGET GAP WHICH EVERYONE KNOWS
IS UNTRUE, TEMPORARY REDUCTION
IN DEFICITS IS FROM EMERGENCY
COVID SPENDING THAT EXPIRED.
MEANWHILE THE CBO SCORED A
20 TRILLION-DOLLAR INCREASE IN
BUDGET DEFICITS OVER THE NEXT
DECADE WHICH MR. BIDEN FORGOT TO
MENTION.
HE STARTED TO TALK ABOUT
INFLATION WHICH MIGHT HAVE BEEN
INTERESTING BUT THEN HE KIND OF
WANDERED OFF INTO PERSONAL
ANECDOTES HOW LONG HE HAS KNOWN
STENY HOYER, STUFF LIKE THAT,
BUT INFLATION I’M AFRAID IS
PROVING TO BE VERY STICKY AT
AROUND 6%.
IN FACT TODAY PRODUCTIVITY CAME
IN BY DECLINING BY NEARLY 2%
OVER THE PAST YEAR.
UNIT LABOR COSTS UP OVER 6%.
BUSINESS INFLATION COMING IN AT
6%.
BIDEN STARTED MOCKING SPECIFIC
REPUBLICANS IN HIS SPEECH BUT
THE BASIC POINT IS, HE WILL DO
ANYTHING NOT TO CUT SPENDING
WHICH IS EXPECTED TO RISE TO
NEARLY 25% OF GDP.
THAT IS ABOUT FIVE PERCENTAGE
POINTS ABOVE THE 50 YEAR
AVERAGE.
I MIGHT ADD GOING BACK, UNIT
LABOR COST INCREASE WILL DO
DAMAGE TO THE CORPORATE PROFITS
STORY AND THE STOCK MARKET.
SO WILL BIDEN’S TAX HIKES AS
WELL.
INTEREST RATES KEEP RISING.
THEY HAVE GOT A WAYS TO GO ON
THE UPSIDE, INCLUDING MORTGAGE
RATES, CREDIT CARD RATES.
ALL THAT HELPS EXPLAIN WHY
AMERICANS FEEL POORER, WORSE OFF
FINANCIALLY THAN A YEAR AGO.
PEOPLE HAVE JOBS.
BUT THEIR WAGES ARE BELOW
INFLATION AND THEIR LIVING
STANDARDS ARE FALLING.
BIDEN FORGOT TO MENTION THESE
THINGS AS WELL.
AFTER READING BIDEN’S LITERARY
MASTERPIECE, I WALKED OVER TO
THE COMPUTER, SET DOWN ON PAPER
A FEW IDEAS HOW TO REACH THE
KIND OF 3 1/2% PLUS GROWTH WE
HAD FOR 50 YEARS FOLLOWING
WORLD WAR II AND WE CAN DO
AGAIN.
THEY ARE POLICY PROPOSALS.
THEY ARE BALLPARK ESTIMATES.
BEAR WITH ME.
IT IS NOT EXACT.
IT IS IN THE BALLPARK.
FIRST EXTEND THE TRUMP TAGS CUTS
THAT WILL ADD 1 1/2% TO REAL
GDP.
ADD A MODIFIED FLAT TAX OF 20%
TO CORPORATE PERSONAL INCOME,
THAT WILL ADD 2% OF GDP
ACCORDING TO THE TAX FOUNDATION.
SPENDING BACK TO 20% OF GDP THAT
WOULD ADD 1/3.
REOPEN OIL AND GAS SPIGOTS WILL
ADD ANOTHER A THIRD OF A
PERCENT.
WORKFARE REQUIREMENTS WILL ADD
ANOTHER THIRD OF A PERCENT.
INDEXING CAPITAL GAINSINFLATION
WOULD ADD ANOTHER THIRD OF A
PERCENT.
REPEAL ALL THE NEW BIDEN
REGULATIONS THAT WOULD ADD 1%
ACCORDING TO KEVIN HASSETT.
STRICT M2 GOALS GUIDED BY
COMMODITY LEVEL TARGETS TO KEEP
INFLATION PERMANENTLY BELOW 2%.
NO TELLING HOW INFLATION
CERTAINTY AT LESS THAN 2% WOULD
BOOST GROWTH, NO TELLING.
ANYWAY, FOLKS THAT WOULD GET YOU
TO 3% OR 3 1/2% OR 4% OR MORE.
OKAY?
IT IS NOT THAT HARD.
IT IS ALL COMMON SENSE.
AND SURPRISINGLY, NONE OF IT WAS
IN MR. BIDEN’S SPEECH TO THE