Former White House economic adviser Larry Kudlow did not mince his words over the weekend about the damage Joe Biden’s radical agenda is doing to the country.
During an interview on Fox News with host Steve Hilton, Kudlow said the Left’s economic agenda could destroy the middle class, raise inflation even higher than it is, and create an irreversible situation where more people are on unemployment than working.
“Everyone’s taxes going up as deficit balloons and all this mad expansion of government has to be paid for. And of all the lies in Biden’s lying slides, here’s the biggest one of all: The idea that there’s public support for this,” host Steve Hilton began.
“These disgraceful slides take a bunch of spurious poll numbers to try to prove Americans back this lurch to the left. But what about the only poll that really matters, the only poll that actually confers legitimacy on a government’s agenda, the election? They have no mandate for any of this. The Democrats never stop telling us how they’re all about defending our democracy. How is it defending our democracy to run a candidate as a moderate centrist, coral the party establishment to crush the lefties practically overnight, then after the election turn around and implement a Bernie Sanders/Elizabeth Warren agenda?” Hilton asked.
“Well, listen, it’s all very Orwellian, I agree. And, you know, one motto here is, ‘If you go woke, you will go broke.’ This is a left-wing agenda, and probably it’s important to fix the most recent issue, which is spending. Reconciliation or the budget resolution that may turn into reconciliation, they’re actually trying to say that’s only $3.5 trillion, ‘only,’ but actually, it’s been priced out at 5 to $5.5 trillion by some independent think tanks,” Kudlow said.
“And I think that’s exactly right. Now, here is the point. The more you spend, the more strings are tied to that spending. I mean, think about the unemployment compensation, but also think about the Green New Deal, all of the subsidies in the Green New Deal that are going to be tied to regulations that will block business,” Kudlow added.
“So what you are setting up is a massive spending and regulatory state. And then let’s bring in all of the tax hikes, which I agree with you, I mean, on the supply side of the economy they’re going to choke off output, they’re going to choke off the production of goods and services, there’s no question about that,” he said.
“And you’re right about the pipeline. We’d rather give the keys to Vladimir Putin to run Europe than we would continue energy independence here at home. This stuff is bad policy. There’s no question about it. Here is — what the risk is, the Federal Reserve, which is buying roughly half of the new debt, we’ll increase the debt by some 10 to $15 trillion over the next decade or so,” he continued.
Kudlow said: “If the Fed keeps buying half of that new debt, then you will have inflation. Right now we may have temporary inflation or not, I honestly don’t know. It is what it is and it’s cutting into workers’ wages, as you said. Longer-term, if the spending goes on and we choke off the supply side of the economy through taxes and regulations, and the Federal Reserve keeps buying all these bonds, you will have permanent inflation.”
“I mean, listen, Steve, if you and I were going to present a socialist central-planning regulatory state, entitlement state agenda, if we were going to do that — which we wouldn’t, but if we were — wouldn’t you want to sell it on the basis of better economic growth?” he sarcastically asked.
“Like, it would be false, but you would say, Well, this would be 3.5 or 4 percent growth, I promise you,” he said.
“They’re only promising less than 2 percent growth, so they need some help from Madison Avenue, as well as — they should read some books by Art Laffer and Tom Sowell and Larry Kudlow to tell them that if you go woke, you’re going to go broke. You will just choke off the economy,” he said.