WELCOME TO KUDLOW, I’M LARRY
KUDLOW.
WE BEGIN TONIGHT WITH A REAL
ECONOMIC DECLARATION FROM OUR
PRESIDENT JOE BIDEN, WHICH WE
WILL NOW RECORD FOR POSTERITY.
PLEASE TAKE A LISTEN.
>> FOR TOO LONG, THROWING
AROUND TERMS LIKE PRO-GROWTH AND
SUPPLY SIDE ECONOMICS TO DRIVE
AN ECONOMIC AGENDA THAT DIDN’T
DELIVER ENOUGH GROWTH AND
SUPPLIED MORE WEALTH TO THOSE
WHO ARE ALREADY VERY WELL
OFF.
FROM DAY ONE OF MY ECONOMIC
AGENDA HAS BEEN DIFFERENT, AND
ITS BEEN ABOUT TAKING A
FUNDAMENTALLY NEW APPROACH TO
OUR ECONOMY.
LARRY: WELL THAT’S RIGHT, JOE.
WE HAVE A BRAND NEW APPROACH TO
OUR ECONOMY.
YOU GENERATED THE FIRST SERIOUS
BOUT OF INFLATION IN FOUR DECADE
S.
NICE GOING.
THIS COULD NOT HAVE BEEN AN EASY
THING, THE FED HAS BEEN TRYING
TO GET INFLATION ABOVE THEIR 2%
TARGET FOR YEARS AND YEARS.
YOU JUST DID IT IN NINE MONTHS.
NICE GOING, SIR.
7% IS CALLED WAY TOO MUCH
GOVERNMENT SPENDING TO BOOST
DEMAND AND WAY TOO MANY TAXES
AND REGULATIONS TO CHOKE OFF
SUPPLY.
WHAT YOU SHOULD DO IN THE NEW
YEAR, BY THE WAY, IS DUMP YOUR
ADVISORS AND THEN MAKE SENATOR
JOE MANCHIN THE CHAIR OF YOUR
COUNCIL OF ECONOMIC ADVISORS.
WHY?
WELL, BECAUSE HE WAS COMPLETELY
RIGHT ABOUT HIS HIGH INFLATION
FORECAST.
IN FACT HE’S BEEN RIGHT ALL YEAR
, AND THAT’S WHY WE’RE
SAVING AMERICA AND KILLING THE
BILL.
YOUR $2 TRILLION SPENDING BILL
LAST WINTER CONTRIBUTED MIGHTILY
TO INFLATION AND THE
FEDERAL RESERVE ENABLED IT
AND DISTINGUISHED DEMOCRATIC
ECONOMIST LIKE LARRY SUMMERS AND
JASON FURMAN TOLD YOU SO ALONG
WITH JOE MANCHIN.
NOW IF YOU SLAP ON ANOTHER
$5 TRILLION OF SPENDING, WHICH
YOU HAVE TRIED AWFULLY HARD TO
DO BUT HAVE FAILED AND WILL
CONTINUE TO FAIL, WELL THEN,
WE’LL HIT DOUBLE-DIGIT INFLATION
, SO YOU’RE RIGHT, SIR.
YOU TRIGGERED A FUNDAMENTALLY
NEW APPROACH TO OUR ECONOMY.
A BIG INFLATION WHICH INEVITABLY
WILL LEAD TO A BIG RECESSION IN
A COUPLE OF YEARS.
SO THANK YOU FOR THAT.
NOW, MAYBE YOU CAN HAUL OUT VICE
PRESIDENT KAMALA HARRIS AND THEN
SHE’LL PUT YOUR NEW ECONOMIC
THINKING IN THE SAME HISTORICAL
PANTHEON AS PEARL PEARL HARBOR
AND 9/11 WHICH WAS DISGUSTING
YESTERDAY BUT AS FOR JOBBING
ATTACK ON SUPPLY SIDE GROWTH
ECONOMICS I INVITE YOUR
ATTENTION TO SOME ACTUAL FACTOID
S.
IN A RECENT PIECE BY TRUMP
ECONOMIC ADVISORS USING
GOVERNMENT FACTOIDS, THEY NOTE,
THAT IN 2019, ALONE, REAL MEDIAN
HOUSEHOLD INCOME ROSE BY $4,400.
THAT’S MIDDLE INCOME FOLKS,
THAT’S A BIGGER INCREASE IN ONE
YEAR THAN THE WHOLE COMBINED
TOTALS DURING THE GEORGE W. BUSH
AND OBAMA ADMINISTRATIONS.
REAL WAGES FOR THE BOTTOM 10% OF
THE DISTRIBUTION ROSE 8.4% WHILE
REAL WAGES FOR THE TOP ONLY 5.2%
REAL WEALTH FOR THE BOTTOM HALF
OF INCOME EARNERS ROSE AN
INCREDIBLE 28.4%, WHILE THE
TOP 1% ONLY 8.9%.
BUSINESS INVESTMENTS SURGED AS
DID LABOR PRODUCTIVITY, WHICH
IS WHY REAL WAGES FOR THE MIDDLE
CLASS INCREASED FAR MORE THAN
FOR THE UPPER END FOLKS.
BY THE WAY, TRUMP TAX POLICY
IMPOSED A SEVERELY LOWER CAP FOR
THE RICH BLUE STATE
DEDUCTIONS FOR STATE AND LOCAL
TAXES.
YOU WANT TO SUBSIDIZE THE BLUE
STATE RICH.
PRESIDENT TRUMP’S SUPPLY SIDE
POLICIES LED TO A MIDDLE CLASS
BLUE COLLAR BOOM THROUGHOUT THE
COUNTRY.
UNEMPLOYMENT AMONG MINORITY
GROUPS, THAT’S AFRICAN AMERICANS
, HISPANIC AMERICANS,
ASIAN AMERICANS, WOMEN, ALL THAT
DROPPED TO 50 YEAR LOWS AND IN
SOME CASES, EVEN LOWER.
POVERTY FELL SUBSTANTIALLY.
SO DID INEQUALITY, BUT UNCLE JOE
, YOUR BIG GOVERNMENT
SOCIALISM PLAN TO SPEND TAX AND
REGULATE THE ENTIRE ECONOMY IS
LOSING GROUND ON ALMOST EVERY
ONE OF THESE POINTS.
YOUR SIGNAL ACHIEVEMENT WITH
YOUR SO-CALLED FUNDAMENTALLY NEW
APPROACH TO THE ECONOMY IS JUST
A MASSIVE INFLATION TAX ON
MIDDLE CLASS WORKING FOLKS AND
EVEN MORE ON THE LOWEST INCOME
FOLKS, AND UNCLE JOE, AS YOU
WERE READING ACROSS YOUR TELE
PROMPTER THIS MORNING
ATTACKING SUPPLY SIDE ECONOMICS,
LET THE RECORD SHOW THAT AS A
SENATOR, YOU VOTED FOR RONALD
REGAN’S HUGELY SUCCESSFUL SUPPLY
SIDE TAX CUT PACKAGES IN BOTH
1981 AND 1986, SO, EITHER YOU
WERE SMARTER BACK THEN OR
YOU’VE BECOME KIND OF A
HYPOCRITE RIGHT NOW.
MAY I REMIND YOU, SIR, DEMOCRAT
JOHN F. KENNEDY WAS THE FIRST
POST-WORLD WAR II SUPPLY SIDE
TAX CUTTER AND IT LED TO MASSIVE
ACROSS-THE-BOARD
PROSPERITY THEN CAME REAGAN AND
THEN CAME TRUMP.
LOWER TAXES, WITH THEIR
INCENTIVES TO WORK AND INVEST
BOOST PROSPERITY AND REDUCED
INFLATION, AND AS ART LAFFER
REMINDS US, YOU TAX SOMETHING
MORE, YOU’RE GOING TO GET LESS
OF IT, BUT IF YOU TAX SOMETHING
LESS, YOU’LL GET MORE OF IT.
SOMEBODY SHOULD ADD THAT TO YOUR
TELEPROMPTER, MR. PRESIDENT.
YOU KNOW IT WAS JOHN F. KENNEDY
WHO FIRST SAID A RISING TIDE
LIFTS ALL BOATS.
SOMEBODY SHOULD ADD THAT TO YOUR
TELEPROMPTER.
COME TO THINK OF IT, SIR, JUST
THROW THE WHOLE TELEPROMPTER OUT
AND GET YOURSELF A NEW ONE.
THIS TIME, BACKED UP BY SOME
COMMON SENSE ECONOMIC THINKERS.
JUST MY THOUGHT, SIR, WITH ALL