TURNED AROUND.
TOLD YOU IT WAS VOLATILE.
SEE YOU TOMORROW ♪
LARRY: HELLO, FOLKS WELCOME TO
"KUDLOW," I’M LARRY KUDLOW.
TODAY’S ANNOUNCEMENT OF THE
SUSPENSION OF 18.4 CENTS
GASOLINE TAX, JOE BIDEN HAS COME
UP WITH A GIMMICK RATHER THAN A
POLICY, OR PERHAPS TO THINK
ABOUT IT ANOTHER WAY HIS
ANNOUNCEMENT ON THE GAS TAX
SHOWS HIS POLICY REMAINS TO END
FOSSIL FUELS THAT MEANS HE STILL
INSISTS IMPLEMENTING HIS RADICAL
CLIMATE CHANGE IDEOLOGY, INSTEAD
OF DEFENDING AMERICAN ENERGY
SECURITY OR FOR THAT MATTER
AMERICAN NATIONAL SECURITY.
THE TAX HOLIDAY IS JUST SILLY.
IT HAS NO CHANCE OF PASSING
CONGRESS.
IT WILL NOT REDUCE GASOLINE
PRICES.
IT DOES NOTHING OF COURSE TO
HELP ENERGY COMPANIES INCREASE
FRACKING OR PIPELINING OR
REFINING.
IT DOES NOTHING.
AT BEST A GAS TAX SUSPENSION
WITH A 4% DISCOUNT ON THE PRICE,
EVEN ASSUMING ALL THAT IS PASSED ON TO THE CONSUMERS WOULD LOWER
ON TO THE CONSUMERS WOULD LOWER
THE AVERAGE PRICE FROM $5 TO
$4.82.
APPLYING STANDARD MICROECONOMIC
THEORY THE CHEAPER PRICE MIGHT
ACTUALLY INCREASE GAS DEMAND.
THEN THE PRICE AT THE PUMP WOULD
GO BACK UP.
BUT THE TRICK HERE, WHICH ELUDES
THE BIDENS, IS TO INCREASE THE
SUPPLY OF GASOLINE BUT HE WON’T
DO THAT BECAUSE THEN IT WOULD
VIOLATE HIS GREENIE POLICIES.
HE WOULD RATHER BLAME VLADMIR
PUTIN AND UKRAINE OR RECENTLY
HIS INCREDIBLE ATTACKS ON
AMERICAN OIL COMPANIES, WE’LL
GET BACK TO THAT IN JUST A
MOMENT BUT FIRST HERE IS
PRESIDENT BIDEN CONCOCTING A
TRULY STUPID ARGUMENT ABOUT THE
ENERGY CRISIS.
SEE FOR YOURSELF.
PRESIDENT BIDEN: FOR ALL THOSE
REPUBLICANS IN CONGRESS
CRITICIZING ME TODAY FOR HIGH
GAS PRICES IN AMERICA, ARE YOU
NOW SAYING WE WERE WRONG TO
SUPPORT UKRAINE?
ARE YOU SAYING WE WERE WRONG TO
STAND UP TO PUTIN?
ARE YOU SAYING THAT WE WOULD
RATHER HAVE LOWER GAS PRICES IN
AMERICA THAN PUTIN’S IRON FIST
IN EUROPE?
LARRY: YAY, SURE, BUT OF COURSE
REALLY BIDEN’S ENERGY PROBLEMS
ARE COMPLETELY SELF-INFLICTED.
ALL RIGHT, DON’T TAKE MY WORD
FOR IT.
HERE IS FED CHAIR JAY POWELL OWN
THE SUBJECT.
>> WOULD YOU SAY THAT THE WAR IN
UKRAINE ASK THE PRIMARY DRIVER
OF INFLATION IN AMERICA?
>> NO INFLATION WAS HIGH,
CERTAINLY BEFORE THE WAR IN
UKRAINE BROKE OUT.
LARRY: WHOOPS.
THERE SOMEONE GOES AGAIN CITING
ACTUAL FACTOIDS INSTEAD OF SILLY
MADE-UP CONCOCTED FALSEHOODS.
WOW.
BY THE WAY IF THE GAS TAX
HOLIDAY GOT THROUGH CONGRESS,
WHICH IT WOKEN, IT WOULD DEFUND
THE HIGHWAY FUND FOR ROAD SAFETY
AND OTHER INFRASTRUCTURE BY
PERHAPS UP TO $20 BILLION.
THAT MONEY HAS GOT TO BE
REPLACED.
I BET YOU AT SOME POINT THE
SOCIALISTS IN THE DEMOCRATIC
PARTY WILL PROPOSE AN EXCESS
PROFITS TAX SUCH AS THE ONE
RECOMMENDED BY SENATOR RON WYDEN
ENDORSED BY PRESIDENT JOE BIDEN
THAT WOULD ADD 21% TO THE
CURRENT CORPORATE TAX OF 21% FOR
A GRAND TOTAL OF 42%, WHICH
WOULD STIFLE ALL MANNER OF OIL,
AND GAS PRODUCTION EMPLOYMENT
AND EXPANSION, EXACTLY THE
REVERSE OF WHAT ANY SENSIBLE
PERSON WOULD HOPE FOR BUT THESE
ARE NOT SENSIBLE PEOPLE.
NOW I THINK, REAL TAX CUTS TO
MITIGATE THE COMING RECESSION
WOULD BE AN EXCELLENT IDEA,
LIKE, MAKING THE TRUMP TAX CUTS
PERMANENT OR MOVING TOWARDS FLAT
TAX REFORM AND SIMPLIFICATION.
YOU COULD COUPLE THAT WITH A
MAJOR DEREGULATORY PUSH, NOT
ONLY ON ENERGY BUT ON ALL
BUSINESS AND ALL INDUSTRY.
NOW TODAY.
>> I POWELL TOLD CONGRESS THAT
THE INCREASE IN FED RATES WOULD
LIKELIHOOD LEAD INTO RECESSION.
THE BEST WAY TO COUNTER A
RECESSION IS SLASH TAXES AND
REGULATIONS.
WHILE THE FED OPERATES ON THE
MONEY SUPPLY FISCAL POLICY WOULD
CREATE NEW INCENTIVES TO WORK,
INVEST AND GROW THE ECONOMY.
NOW THAT’S THE PROSPERITY PLAN.
OF COURSE BIDEN IS COMPLETELY
OPPOSED TO THIS SUPPLY SIDE MIX
AND THAT’S WHY WE’RE IN SO MUCH
TROUBLE.
THE FED WOULDN’T HAVE TO REDUCE
DEMAND SO MUCH IF CONGRESS WOULD
TAKE STEPS TO INCREASE SUPPLY.
LET’S NOT MAKE THIS ANY HARDER
THAN IT NEEDS TO BE BUT BIDEN OF
COURSE IS MAKING IT VERY HARD
FOR WORKING FOLKS WHO CAN’T
AFFORD GAS OR GROCERIES, REAL
WAGES ARE DROPPING ALONG WITH
THEIR RETIREMENT SAVINGS.
INCREDIBLY THERE IS EVEN TALK OF
A NEW BUILD BACK SMALLER
RECONCILIATION BILL THAT WOULD
INCLUDE SIZABLE SOCIAL SPENDING
ALONG WITH VERY LARGE TAX HIKES.
NOW THAT WOULD GUARRANTY MORE
INFLATION AND A DEEPER
RECESSION.
THE SAME DEMOCRATS WHO VOTED
INFLATION IN BACK IN MARCH OF
2021 WITH THEIR
2 TRILLION-DOLLAR SPENDING
PACKAGE, WELL THEY WOULD NOW BE
VOTING RECESSION IN WITH A 1 1/2
TRILLION DOLLAR TAX HIKE PLUS
MORE SPENDING.
IT IS GREATEST EXAMPLE OF
MONETARY MISMANAGEMENT SINCE
HERBERT HOOVER AND THE GREAT
DEPRESSION.
BUT HANG ON FOLKS, HANG ON,
PLEASE, JUST A LITTLE LONGER.