Here they are again, Joe Biden and his campaign buddies telling us how great their economic policies have been. wait. Fantastic clip. Enter the mythically successful “successful” economic policies.
The problem is that in barely more than a year, Bidenomics has taken a non-inflationary boom and turned it into a case of hyperinflation. Frankly, with no relief in sight at least until the cavalry comes and changes congressional policies in November, I am pleased to see my dear friends on the Wall Street Journal editorial board. Treasury Secretary Janet Yellen for a task.
It leads Biden’s economic victory run, but unfortunately all the socialist policies of the big progressive government coming from the far left of the Democratic Party have supported.
She believes that the $2 trillion stimulus package in March 2021 was necessary to boost the economy. The problem is that the economy was already in a V-shaped recovery emerging from the pandemic, buoyed by President Trump’s policies of lower taxes, deregulation, and opening fossil fuel spigots.
Ms. Yellen, a prominent economist and Former Federal Reserve Chairman He is married to an eminent Nobel who speaks with a forked tongue. Its analysis is wrong. Moreover, she was leading the process along with Jay Powell and Joe Biden, creating inflationary pressures from exorbitant government spending, massive government borrowing and the printing of federal money.
These are all homegrown policies that predated Vladimir Putin’s invasion of Ukraine. There was an 8% inflation rate due to these huge financial mistakes. That was why Mrs. Yellen’s reputation had deteriorated. Personally, I hate seeing it. Professionally, I have to talk about it.
As the Wall Street Journal has pointed out (and I’ve said it a dozen times on this show over the past year), Trump’s tax cuts have increased real wages for blue-collar and minority workers. Unemployment rates for these groups have fallen to their lowest level in 50 years. Poverty decreased. Inequality decreased.
The biggest winners from individual and corporate tax cuts have been middle and lower income earners—not those with higher incomes. These are facts. Ms Yellen, speaking in Detroit, argues that Trump’s tax cuts have increased inequality and slowed growth. She’s actually wrong and she knows it. By a year, with Mr. Biden’s inflation rate of 8%, real workers’ wages had fallen 3.5% over the past year.
The first point in today’s White House economic plan fact sheet says that workers are empowered. Oops, forgot about the low real wages and family incomes!
They talk about making and building in America, but wait a minute, you can’t get a permit to make or build anything in America with Biden. His zealous environmental rules have turned everything off. All sorts of energy and, by the way, normal road-building infrastructure too — they can’t get past the White House and EPA fanatics.
They say that the reward of work is not wealth. Well, every model – government or private – shows that Biden’s latest legislation will heavily tax the middle class and that the IRS will spend its time emptying the middle class, and virtually no one in the entire American population thinks the inflation-cutting act will reduce inflationAlmost nobody.
I will conclude with this thought. This radical global warming, and obsession with climate change that guides every policy of the Biden administration, is pushing the United States and the global economy toward an unstoppable economic decline. Hat tip to Joseph Sternberg of the Wall Street Journal regarding his recent column, “The Coming Global Climate Policy Crisis.”
There is no climate emergency. It is all a socialist invention of central planning, trying to confuse this bureaucratic debt around our necks. Fossil fuels generate about 85% of global energy, even after decades of government support and crazy quilted regulatory schemes, but what would happen if any of these climate policies of “net-zero that, net-zero that, or we were to take your car away from you” , or we won’t let you turn on your air conditioner” or literally any of these crazy policies that just want to separate America, if any of those things really happen, to be a global economic and financial disaster.
Folks, I want to go home with an optimistic frame of mind as the weekend approaches. why? Because the cavalry is coming and that’s my folly.
This article is adapted from Larry Kudlow’s opening comment to the September 9, 2022 edition of Kudlow.