"KUDLOW" IS NEXT.
♪.
LARRY: HELLO, FOLKS, WELCOME TO
"KUDLOW," I’M LARRY KUDLOW.
SO, LET ME GET THIS RIGHT, WE’RE
IN A RECESSION AND THE RECESSION
IS ACCOMPANIED BY HIGH
INFLATION, MILTON FRIEDMAN USED
TO CALL THAT INFLATIONARY
RECESSION, AND WE ARE
UNFORTUNATELY GOING TO BE
AFFLICTED BY THIS DISCOURAGING
CONDITION FOR QUITE SOME TIME.
SO, THE BIDEN DEMOCRATS HAVE PUT
TOGETHER A NEW FISCAL DEAL WHICH
WILL RAISE TAXES BY 739 BILLION,
DESIGNED TO MAKE THE RECESSION
WORSE, AND 433 BILLION IN
ADDITIONAL SPENDING DESIGNED TO
MAKE THE INFLATION HIGHER.
SO NATURALLY THIS DREADFUL BILL
IS BEING CALLED THE INFLATION
REDUCTION ACT OF 2022.
GEORGE ORWELL WOULD BE PROUD.
I CALL IT THE STAGFLATIONARY
MALAISE ACT.
BY THE WAY, I GUESS DEMOCRATS
BELIEVE INFLATION WILL COME DOWN
BECAUSE IN THEIR FANTASY WORLD
THE TAX HIKES EXCEED THE
SPENDING INCREASES FOR A
300 BILLION-DOLLAR DEFICIT
REDUCTION, BUT WAIT A MINUTE.
WHAT HAPPENED TO THE 284 BILLION
CHIPS PLUS SEMICONDUCTOR,
CORPORATE WELFARE BAILOUT BILL
THAT JUST PASSED?
THAT WIPES OUT PHONY DEFICIT
REDUCTION, DOESN’T IT?
HANG ON A SECOND, OBAMACARE
SUBSIDIES IN THE SCHUMER-MANCHIN
BILL COME IN 220 BILLION OVER 10
YEARS.
THAT OCCURRINGING TO THE CBO THA
ADDS ANOTHER 150 BILLION.
SO, IN THE BLING BLINK OF AN
EYE, THE LAST 48 HOURS, RABID
ANTI-INFLATIONISTS IN WASHINGTON
JUST INCREASED FEDERAL SPENDING
BY ROUGHLY $870 BILLION.
IS THAT NOT INFLATIONARY?
HOW ON EARTH JOE MANCHIN COULD
BE SIGNING ON TO THESE
OUTRAGEOUS SPENDING BILLS IS
BEYOND ME.
I DON’T GET IT.
HE HAS BROKEN MY HEART.
WE’RE NOT GOING STEADY ANYMORE.
I’M GIVING HIM BACK MY
FRATERNITY PIN, HAVE TO DO IT.
ONE MORE WORD ABOUT THE TAX
HIKES.
THE 15% CORPORATE MINIMUM TAX IS
REALLY A KILLER BECAUSE IT IS
DONE ON THE BASIS OF WHAT IS
CALLED BOOK PROFITS WHICH MEANS
NO LEGAL CREDITS AND DEDUCTIONS
THAT ARE USED IN IRS PROFITS CAN
BE APPLIED.
THE BIGGEST PIECE IS EXCLUDING
THE 100% IMMEDIATE EXPENSING OF
PLANTS AND EQUIPMENT WHICH WAS A
MAJOR PART OF THE SUCCESSFUL
TRUMP CORPORATE TAX CUT.
BUSINESS INVESTMENT BY THE WAY
FELL ALMOST 3% IN THE Q2 GDP
REPORT AND BUSINESS PLANTS AN
STRUCTURES FELL 12%.
THIS 15% MINIMUM TAX WILL MAKE
THINGS FAR WORSE.
AND REMEMBER, 70% OF THE
CORPORATE TAX BURDEN FALLS ON
MIDDLE INCOME WORKING FOLKS,
BLUE-COLLAR FOLKS, TYPICAL
AMERICAN FAMILIES.
SO THIS SCHUMER-MANCHIN IDEA
WILL LEAD TO DEEPER DROPS IN
REAL WAGES AND FAMILY INCOME.
THAT IS HOW DUMB THIS BILL IS.
FINALLY, I GROW WEARY OF THIS
SEMANTIC DEBATE ABOUT RECESSION.
COME ON, TWO STRAIGHT DECLINING
QUARTERS IS GOOD ENOUGH WORKING
DEFINITION OF RECESSION.
IN FACT OUR PETER DOOCY HAD THIS
EXCHANGE IN THE WHITE HOUSE
PRESS ROOM.
TAKE A LISTEN.
REPORTER: SAID IN 2008 OF COURSE
ECONOMISTS HAVE A TECHNICAL
DEFINITION WHICH IS OF A
RECESSION, WHICH IS TWO
CONSECUTIVE QUARTERS OF NEGATIVE
GROWTH.
AND YESTERDAY HE SAID TWO
NEGATIVE QUARTERS OF GDP GROWTH
IS NOT THE TECHNICAL DEFINITION
OF A RECESSION.
>> IT IS NOT.
IT IS NOT.
IT IS NOT, YES IT IS, IT IS.
SECOND STRAIGHT CONTRACTION IN
GDP SHOWS PLUNGING HOUSING, THAT
ALONG WITH COLLAPSING BUSINESS
INVESTMENT, ALONG WITH 8.9%
INFLATION RATE.
EVERY PIECE OF THIS REPORT WAS
WORSE THAN THE CONTRACTION IN
THE FIRST QUARTER.
AND PEOPLE WHO THINK THE FED
WILL GIVE UP ITS TIGHT MONEY
POLICIES BECAUSE OF RECESSION
SHOULD REALLY THINK TWICE ABOUT
THAT ERRONEOUS ASSUMPTION.
STOCK MARKETS ARE, ARE YOU
LISTENING?
MAKE NO MISTAKE, THE WOKE
ECONOMISTS IN THE BIDEN
ADMINISTRATION DON’T CARE ONE
WIT ABOUT GROWTH.
THEY’RE ONLY INTERESTED IN
INCOME REDISTRIBUTION.
THEY’RE WAGING WAR AGAINST ALL
BUSINESS AND OF COURSE FOSSIL
FUELS.
THEY BELIEVE ALL PROFITS ARE
EXCESSIVE AN SHOULD BE TAXED
MORE.
ALL OF THEIR ECONOMIC POLICY
THINKING IS BASED ON RADICAL
CLIMATE ACTIVISM WHOSE
DISASTEROUS CONSEQUENCES GIVEN
US SKY-HIGH INFLATION, OIL
PRICES, GAS PRICES, GROCERY
PRICES, THE PRICE OF EVERYTHING
ELSE.
THIS IS THE TO USE STEVE FORBES
PHRASE, MODERN SOCIALISM THROUGH
THE REGULATORY PLANNING STATE.
NOBLIST FREDERICK HAYAK CALLED
IT "THE ROAD TO SERFDOM."
I THINK BIG GOVERNMENT
CAPITALISM CAPTURES IT ALL.
IN 18 MONTHS THE WOKE POLICIES
DESTROYED A SUCCESSFUL ECONOMY.
IN THE LAST 48 HOURS THEY ARE
GIVING US MUCH MORE OF THE SAME.
IT IS AN ABSOLUTE OUTRAGE.
WE NEED TO THROW THIS CROWD OUT
AND REPLACE THEM WITH SUPPLY
SIDE POLICIES, TAX CUTS AND
DEREGULATION THAT WILL
REJUVENATE THE ECONOMY AND THE
AMERICAN SPIRIT.
ONLY THING GOOD I CAN SAY