Kudlow 'respectfully' disagrees with Biden's comments on government

hello everyone welcome back to kudlow i'm larry kudlow great to be with you by now folks you may have heard or seen a few moments from president biden's address to congress but if you didn't here's what was outlined the democratic party has made government its god the congress their place of worship and the white house their rectory okay the key point in biden's speech was when he said this our constitution opens with the words as trade as it sounds we the people was time remember that we the people are the government you and i so we the people are the government got that well respectfully i don't think so not even remotely so here's a refresher for mr biden from a very reputable source it's called the declaration of independence and i quote we hold these truths to be self-evident that all men are created equal that they are endowed by their creator with certain unalienable rights that among these are life liberty and the pursuit of happiness and that to secure these rights governments are instituted among men deriving their just powers from the consent of the governed okay in other words the ranking goes like this one our creator two the people three government mr biden has it too much and biden has said time and time again he wants to transform the economy and society he's not pulling his punches last night it was square up the idea that we the people our government is the most transformative statement possible on the economy he wants government not the private enterprise system or the markets to run our transactions our trade and our commerce on social policy he wants the government to pass out cash benefits to the middle and lower income folks with no work or education requirements this breaks the 25 year old bipartisan deal between bill clinton and newt gingrich to incentivize employment with work requirements every president up to now has stayed with that model it's been a great success but as the wall street journal editorialized this morning this is biden's cradle to grave government that was the great society lbj's great society days and it lasted until the 70s and then reagan and clinton and bush and obama and trump stayed with work requirements and reformed entitlements because it worked this mo will not work this whole strategy will not work larger and larger government more spending more dependency now probably even worse than all this social policies like this undermine the dignity of work which is really at the center of our economy and along with the family it's the center of our whole social fabric knocking it down is literally demoralizing this may be the most promiscuous aspect of mr biden's transformation vision worse worse than taxes worse than spending but of course then again you can't ignore the endless spending spree financed allegedly by high taxes on successful earners and buy free money from the fed as we heard again this week now just listen to the president again last evening it's time for corporate america and the wealthiest one percent of americans have just begun to pay their fair share we're going to reward work not just wealth and the irs is going to crack down on millionaires and billionaires who cheat on their taxes okay cheat on their taxes righto now as a quick aside today's real gdp number 6.4 really good following 4.3 in the fourth quarter also really good the economy is booming housing is up 11 business equipment investment advanced 10 and aggregate demand is called private domestic final sales for those of you consumption plus investment c plus i anyway that was up 11 annualizing q1 that is a boom it's a boom built on operation warp speed vaccinations reopening the economy by the way trump policies are still there until they're not and legislation might pass but right now we still have minimal regulations and lower tax rates now one thing i will raise inflation in the gdp report inflation came in at 4.1 percent it's not good we'll see if it's transitory or not and so again for the economic mavens out there nominal gdp is up 10.7 that's real output plus inflation and that's really way higher than the 1.6 treasury bond yields so i don't know massive spending taxing and free money something's going to give here something in the future just might give we'll see i don't want to digress too much i want to go back to mr biden so he stood firm on his massive tax hikes essentially as i've said an assault on private investment now here's where he and i disagree team biden believes that government drives investment i believe that free enterprise market market-driven private economy incentives drive investment and when you attack profits and attack capital you are attacking businesses workers wages and family income now in an interview later in the show you'll hear senator rob portman remind us that 70 of the savings from trump's corporate tax cuts flowed directly into higher wages for workers contributing to the 19 straight months of wage growth before the pandemic and also after the trump tax cuts r d research and development jumped by 25 amounting to a 707 billion increase and capex capital spending jumped by 20 percent and 1.6 trillion in overseas earnings came back to the us those are mr biden to coin a phrase true factoids what's more studies from the nonpartisan congressional budget office cbo show that workers will bear most of the burden of higher tax rates in the form of lower wages and lost jobs president biden sells his gigantic tax grab as a scintillating democratic base exciting tax the rich scheme but in fact the tax assault on investment and capital gains and elsewhere in the economy will destroy jobs it will reduce wages it will damage the economy that's what history shows clearly now i will say this to defeat president biden's tax plan republicans have got to educate the public that huge tax heights will destroy jobs not increase them it's not a hard case to make we've done it before everybody wants a good paying job but to get to that there has to be a healthy business and then healthy businesses including startups require investment right who do you go to for a startup well you go to wealthy people you go to family members but they all want a good after-tax rate of return now if you're attacking investment you're attacking jobs you're attacking wages and you're attacking middle class family incomes let's make it real simple we've done this in the past if we penalize success and attack investment where are the new apples the new microsoft's the new spacex the new uber higher tax rates that kill incentives would kill our dynamic economy make it stagnant and sclerotic i could go on and on on this subject now the green new deal that was out last night too it's going to reduce our power it's going to reduce our energy it's going to jack up prices of everything to do with electricity gasoline and power millions of jobs will be lost and the economy will be greatly damaged that's it i could spend more time but you've heard me on this so let's just pull back for a moment take a look at the story mr biden's first hundred days wow it includes about six trillion dollars of new spending and probably about 4 trillion in higher taxes that is a nice piece of work now i worked for ronald reagan he had a good first year cutting taxes beefing up the military i also worked for donald trump he had a strong first year he cut taxes and he built up the military but those esteemed presidents and their first year achievements are pikers compared to mr biden's 6 trillion in spending some piece of work maybe another 4 trillion in taxes that is hard at it and again i will say my mantra if it ain't broke there is no need to fix it now lastly again again spending massive spending giant tax hikes free money it's a very weird economic policy mix and again just to refresh it is the creator who endows us with unalienable rights whereas government works for the people and must have the consent of the people government itself is not to be confused with the people now perhaps the american people are already starting to see some of this it is interesting not necessarily scientific but 51 percent of people who watched president biden's address to congress last night told cnn they had a very positive reaction now that is six percent less than president trump's first speech and 17 less than president obama's first speech so folks keep up alive i want to remain optimistic ours is the best economic system market-oriented system in the world the best democracy in the world the greatest history in the history of history but we're going to have to work hard to protect it from all this transformation stuff that i do not like

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Id: bPDgovtGivk

Length: 10min 13sec (613 seconds)

Published: Thu Apr 29 2021