Kudlow: Biden’s fiscal policies are completely irrelevant


It’s Friday, folks. Let’s do some random thoughts on money, politics, life, freedom, and the pursuit of happiness.

First up: our friend Senator Bill Hagerty, who has been kind enough to attend our show on several occasions, refuses to vote for unanimous consent to close debate and amendments to the infrastructure bill .

Why? Because the CBO just marked it as a $ 256 billion deficit. In other words, the pay-fors are not being paid and Mr Hagerty, whom I have known for many years, being a man of principle, opposes the deficit score – period.

Now here’s what I don’t understand: According to reports, 15 other Republican senators were crowding around him on the Senate floor to try to convince him to vote for unanimous consent.

Well, what were they thinking? They are Republicans. We’re talking about conservatives like Ted Cruz, John Cornyn, John Thune … What were they thinking? There are already many, many too many Green New Deals in this bill.

We’ll talk to Kim Strassel of the WSJ and Steve Moore of FreedomWorks about all the issues, especially the unprecedented, centralized control of the economy Democrats seek through the Green New Deal.

It is not free enterprise. It’s corporate cronyism, state capitalism.

These are automakers pledging to sell half of their cars by 2030 as long as the federal government pays for it. Some people would call it socialism and as I mentioned last night President Biden has stifled all extraction and production of rare minerals and he is also aiming to shut down oil, natural gas and coal.

So we couldn’t switch to battery saving even though we wanted to and I don’t want to anyway.

Back to Senator Hagerty. The least the GOP bipartisans can do is pay their bills transparently, openly, but it’s now clear that they haven’t even done it. So I think I am losing my patience with the whole story and I think we should congratulate Senator Bill Hagerty and wish many of his other colleagues would join him.

Second Random Thought: Today’s big job gains are very big.

943,000 increase in the nonfarm payroll plus large upward revisions for the previous two months, meaning more than a million jobs were created in June and July.

It’s big — very big. People who tell us the economy has already peaked are wrong. Unemployment fell to 5.4% from 5.9%. Underemployment fell from 9.8% to 9.2%

The employment-to-population ratio has increased by a solid 4 tenths of a percent and the wage income indicator, which is hourly earnings plus hours worked, is above 10.7% year on year over the past three months. .

It is enormous. Even with a personal consumption deflator of 6.6%, this is still a 4.1% gain in real wages – very strong, as are profits – breast milk from stocks and the lifeblood. economy.

The DOW and S&P 500 hit record highs today, so all is well.

Now I ask you, in the name of old-fashioned American common sense, if you envision a million new jobs a month, rising real wages, rapid consumer spending, big gains in business investment in factories and tech equipment, not to talk about a booming stock market: Does anyone in their right mind think we need an additional $ 5,000 billion in federal spending?

Please raise up your hand. Call me. Send me an email. Write me. 5,000 billion dollars! Not to mention the $ 3 trillion or more in higher taxes that will kill the goose that lays the golden eggs.

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In other words, Biden’s fiscal policies are completely irrelevant. We’re talking more than three degrees of separation from our economic performance — completely irrelevant. They come from another planet.

My last random thought this Friday night centers on an old friend: common sense, traditional values, free enterprise, a return to the principles that made America great. His name is Larry Elder. He is running for governor of California in what may well be a successful effort to recall Gavin Newsom and then achieve victory to topple the not-so-golden state.


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