National Economic Council Director Larry Kudlow predicted during Saturday’s edition of Breitbart News radio on SiriusXM Patriot 125 that the economic successes seen as a result of President Donald Trump’s policies will “play a huge role” in the November midterm elections.
Kudlow discussed the massive tax cut package passed in 2017 allowing “100% expensing in year one and also the repatriation… you’ve got these companies bring back, literally, literally billions and billions of dollars that was stashed overseas to dodge taxes.” He connected this with the unemployment rate that host Matthew Boyle had asked Kudlow about.
Businesses are booming and America is probably entering the “biggest business boom in at least two decades,” according to Kudlow, who added, “…you’re seeing this very, very positive upward spiral of growth, jobs, wages.”
Kudlow went on to predict further increases in average hourly earnings, even up to three percent or more.
“Growth is the key,” he said, noting more than once that “critics on the other side of the aisle” have had a pessimistic view, claiming for over a year that growth could not ascend above 1.9 or 2 percent. Policies, taxes, and regulations “matter” he emphasized. President Trump has rolled back costly and burdensome regulations that are particularly harmful for small businesses but also for big businesses and farms.
“Let Americans take a rip at the ball. Don’t handcuff them. Don’t hinder them. Don’t yell at them. Don’t punish them. Open the door of opportunity and America free markets will work,” he said.
Kudlow said the past 15-20 years has been filled with a lot of pessimistic attitudes and that most young Americans have not seen “a full-throated prosperity cycle.” Kudlow talked about the successes of the American economy under Presidents Ronald Reagan and John F. Kennedy. He said many reporters and economists have said: “It can’t be done.”
“Optimism and prosperity have been the hallmark’s of American prosperity,” he explained. “We can get back to the good if we unleash the animal spirits and if we provide incentives to work, save, invest, and take risks,” said Kudlow. “I think that’s basically that’s what the Trump plan has done.”
Kudlow also discussed a recent Michigan consumer sentiment survey that showed the highest level since the mid-2000s, and he thinks it can be back to levels seen in the 1990s.
He spoke also of a “tremendous rebound in small business profits,” noting that “profits are the mother’s milk of stocks and they’re the lifeblood of the economy.”
“If they’re making money they can expand and if they expand they will hire and if they hire they will pay more,” Kudlow explained as part of “economics 101.” The coming to life of the supply-side of the economy will boost the consumer side of the economy.
“King dollar” has been steady and even stronger holding inflation down and making the American economy the “envy of the world,” said Kudlow. America, as the President has said, is the “most business hospitable place in the world right now and the money is flowing in,” and Kudlow’s “hunch is that it’s just beginning.”
Kudlow went on to predict, “come November, I think the Trump economic success is going to play a huge role in the election” and a mighty surprise for people claiming that Republicans will see big losses.
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